Reference no: EM132736650
Question: Bath Products Ltd manufactures a variety of bath and beauty products for specialty stores. The company has recently introduced the concept of identifying cost of quality and has identified the following costs for the month: Rework time $12,000 Cost of defective products that cannot be reused $14,000 Laboratory testing for safety $18,000 Training of quality control supervisors $21,000 Customer complaints $11,600 Inspection of purchased ingredients $7,800 Product liability $1000 Sales Revenue for the month was $100,000.
1. Show a cost of quality report for Bath Products Ltd. The report should include the following information:
- Classification of the above costs as internal failure, external failure, appraisal and prevention costs.
- Calculation of each cost with respect to percentage of sales.
- Calculation of each cost with respect to percentage of total quality costs.
2. Prepare a report for the management of Bath Products Ltd, commenting on the analysis in requirement (1) and providing suggestion for improvement.
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