Prepare cost of quality report to be used by nfp management

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Reference no: EM132627158

Namibia Food Processing Limited ("NFP") produces canned food products for the local market. To ensure the company remains relevant and profitable the company endeavors to sell high quality products. The following information relates the costs they incurred in the month of August 2020 to ensure quality products.

Cost Amount (N$)

Cost of scrapping faulty goods 12,400

Cost of reworking substandard products discovered in the process 1,800

Cost of sending machine operators for a two week quality training course 9,800

Cost of recalling products 16,000

Cost to confirm supplier's quality accreditation 600

Finished product inspection in the warehouse 7,400

Inspection to detect faulty products 11,400

Legal fees related to product recall 5,800

Replacement of faulty products returned by customers 10,000

Requirement

Question 1: Prepare cost of quality report to be used by NFP management in pursuing quality products.

Question 2: Comment of the company's commitment to quality products

Reference no: EM132627158

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