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 December 2023: Sales                                                    $350,000 Materials Inspection                             $23,500 Direct Materials Costs                          $80,000 Direct Labor Costs                                $35,000 Batch Sampling Costs                            $6,400 Scrap and Rework Costs                       $16,800 Cost of Returns and Warranty              $14,200   What is the quality of cost index? Answer in decimal format (i.e. 0.XXX)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 December 2023:

Sales                                                    $350,000

Materials Inspection                             $23,500

Direct Materials Costs                          $80,000

Direct Labor Costs                                $35,000

Batch Sampling Costs                            $6,400

Scrap and Rework Costs                       $16,800

Cost of Returns and Warranty              $14,200

 

What is the quality of cost index? Answer in decimal format (i.e. 0.XXX)

   
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