Therma glass inc. president has decided to pit in place a new cost of quality...
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Accounting
Therma glass inc. president has decided to pit in place a new cost of quality reporting system so management can see exactly wher the problems are oing from. The company provides you with the following data.
quality activity | cost |
recalls | 250000 |
design changes | 400000 |
in process inspection | 250000 |
pilot testing | 300000 |
recalibration | 125000 |
scrap costs | 175000 |
returns | 350000 |
kitchen burn in tests | 75000 |
salvage | 125000 |
final inspection | 45000 |
TQM Training | 15000 |
warranty claims | 250000 |
raw material inspection | 35000 |
supplier cert | 15000 |
quality-based down time | 65000 |
customer complaints | 125000 |
Total | 2600000 |
Required: 1) develop a cpst pf quality report for the company. State the amounts in both dollars and percent total. 2) The company's revenue for the year was 25000000. What percent of its total revenue are the quality costs? 3) where should the company place its attention in the coming year to most improve its quality performance?
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