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 January 2024: Sales $510,000 Materials Inspection $43,500 Direct Materials Costs $70,000 Direct Labor Training $11,600 Direct Labor Costs $48,000 Batch Sampling Costs $7,800 Scrap and Rework Costs $16,400 Cost of Returns and Warranty $10,200 What is the quality of cost index? Answer in decimal format (i.e. O.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 January 2024: Sales $510,000 Materials Inspection $43,500 Direct Materials Costs $70,000 Direct Labor Training $11,600 Direct Labor Costs $48,000 Batch Sampling Costs $7,800 Scrap and Rework Costs $16,400 Cost of Returns and Warranty $10,200 What is the quality of cost index? Answer in decimal format (i.e. O.XXX)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 4CE: Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the...

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