Expenditures and losses relative to quality

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Reference no: EM131820184

The Gorilla Manufacturing Company of Pittsburg, Kansas, recently studied its expenditures and losses relative to quality for the month of October. They found they had lost $300,000 in scrap and rework. They had spent $40,000 for inspection and $25,000 in prevention-related activities. Evaluate their cost ratios and suggest whether or not the expenditures are warranted.

Reference no: EM131820184

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