If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits?decrease by P25,000increase by P268,000decrease by (P293,000)increase by P25,000 NUBD Co. has the following quality costs for the period:TestingReworkTrainingProduct liability insuranceQuality trainingCustomer surveysReinspection and retestingWarranty repairsTotal quality costsP60,00027,50045,00035,00043,00015,00017,50050,000P293.000Sales for 2021 is P1,000,000.

Costs of quality are costs related to the prevention costs, appraisal costs, internal failure costs,…

Answered: If NUBD Co. is able to reduce quality…

If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? decrease by P25,000 increase by P268,000 decrease by (P293,000) increase by P25,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 1CMA

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