- 14 Marks
PM – Nov 2019 – L2 – Q6b – Cost Management Strategies
Prepare a cost of quality report for Dynamic Plc for the year ended August 31, 2018.
Question
b. Benson Dinka is the management accountant of Dynamic Plc. Mr. Dinka
realises that the present performance reporting system does not highlight
quality costs. The reports contain the information below, but he wants this to
be reported in an appropriate format.
The following information is available in respect of the year ended August 31,
2018
1. Production data:
2. Cost data: Naira
3. Staff training costs amounted to N3,000,000 and product testing costs
were N980,000.
4. The marketing director has estimated that sales of 1,400 units were lost
as a result of bad publicity in trade journals. The average contribution
per heating system unit is estimated at N120,000.
Required:
Prepare a cost of quality report for Dynamic plc. that shows its costs of
quality (using appropriate headings) for the year ended August 31,
2018. (14 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cost of Quality, Quality Management, Quality Reporting
- Level: Level 2
- Topic: Cost Management Strategies
- Series: NOV 2019