Question

1. Recently,Asphal Corp. received a report from an external consulting a Quality Costs Report that totally costs is 21% of its sales. Raynaldo and Richiekun are directors of that company and try to improve the Quality Product and Services by determined A Quality Improvement Program(QIP) to reduced to 17% costs to total revenue. Vintachan as controller tr to reduce the Costs of Quality below:
   
   

   no	Costs	Before QIP	After QIP
   1	Warranty	$ 1,200	$900
   2	Quality Planning	2,800	3,200
   3	Product Acceptance	2,300	2,800
   4	Disposal Costs	700	500
   5	Scrap	600	400
   6	Field Inspection	1,100	1,300
   7	Complain adjustment	1,000	900
   8	Downtime	900	600
   9	Returned materials	600	400
   10	Quality audits	1,500	1,800
   11	Packaging inspection	800	900
   12	Quality Circles	2,600	2,900
   13	Product recalls	700	300
   14	Machine downtime	400	300
   15	New product review	1800	2,100

   
   Required: a) Cost of Quality report before and After QIP    b) is there any improvement, explain

Answer 1

a)