Quality costs indices are often used to measure costs of quality relative to some financial measure, such as percent of sales. The following information on sales and quality costs were incurred in December 2023: Sales $350,000 Materials Inspection $23,500 Direct Materials Costs $80,000 Direct Labor Costs $35,000 Batch Sampling Costs $6,400 Scrap and Rework Costs $16,800 Cost of Returns and Warranty $14,200 What is the quality of cost index? Answer in decimal format (i.e. 0.XXX)
Quality costs indices are often used to measure costs of quality relative to some financial measure, such as percent of sales. The following information on sales and quality costs were incurred in December 2023: Sales $350,000 Materials Inspection $23,500 Direct Materials Costs $80,000 Direct Labor Costs $35,000 Batch Sampling Costs $6,400 Scrap and Rework Costs $16,800 Cost of Returns and Warranty $14,200 What is the quality of cost index? Answer in decimal format (i.e. 0.XXX)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 28BEB: Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of...
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Quality costs indices are often used to measure costs of quality relative to some financial measure, such as percent of sales. The following information on sales and quality costs were incurred in December 2023:
Sales $350,000
Materials Inspection $23,500
Direct Materials Costs $80,000
Direct Labor Costs $35,000
Batch Sampling Costs $6,400
Scrap and Rework Costs $16,800
Cost of Returns and Warranty $14,200
What is the quality of cost index? Answer in decimal format (i.e. 0.XXX)
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