Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The management of Boogie Company thinks that its total costs of quality can be reduced by increasing expenditures in certain key costs of quality
The management of Boogie Company thinks that its total costs of quality can be reduced by increasing expenditures in certain key costs of quality categories. The following costs of quality have been identified by management: Cost of Quality Rework Recalls Reengineering efforts Repair Replacements Retesting Supervision Scrap Training Testing of incoming materials Inspection of work in process Downtime Product liability insurance Quality audits Continuous improvement Warranty repairs Costs P 6,000 15,000 9,000 12,000 12,000 5,000 18,000 9,000 15,000 ,7,000 18,000 10,000 9,000 5,000 1,000 15,000 Required: 1. Classify these costs into the four costs of quality categories. 2. Determine the total pesos being spent on each of the categories. 3. Based on the company's expenditures by cost of quality categories, on which cost category should the company concentrate its efforts to decrease its overall costs of quality?
Step by Step Solution
★★★★★
3.53 Rating (143 Votes )
There are 3 Steps involved in it
Step: 1
Given that Cost of Quality Costs Rework P 6000 Recalls P 15000 Reengineering efforts P 9000 Repair P ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started