
1.
Calculate the quality cost-to-sales ratio for each year and explain whether this type of improvement is possible.
2.
Calculate the relative distribution of costs by category for 2011 and explain the way in which the costs are distributed and state the manner in which they will be distributed as the company approaches a zero-defects state.
3.
Calculate the relative distribution of costs by category for 2015 and explain the way in which the costs are distributed and state the manner in which they will be distributed as the company approaches a zero-defects state.
4.
The quality manager for Company M indicated that the external failure costs reported are only the measured costs and discuss the validity of the Person M’s view point.
5.
Discuss the risk of gain sharing.

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Chapter 14 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
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