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Hello,
Question: quality costs and total quality management at manufacturing division
In the Answer Sheet, the examiner states that a 10% improvement in the failures could generate $4 m in costs savings and the budget for improvement to production which prevent such failures……
Can you please explain to me how did he calculate this 10%? (did he made an assumption?)
It’s just an assumption. He could just as easily have demonstrated the effect by talking about a 25% improvement.
Thank you Ken. 🙂
Assuming 25% improvement, then how much it will generate in terms of cost savings? did the examiner calculate it based on the figures? the $4 cost saving refers to the scrap value figures.
Another question: Dec 2016 Question 2(a)
How is the exchange rate calculated?
Previous rate: C$1= V$1.40 and current rate: C$1 = V$1.50why is it deducted from minus 1 (-1) ?
Thank you Ken. 🙂
Assuming 25% improvement, then how much it will generate in terms of cost savings? did the examiner calculate it based on the figures? the $4 cost saving refers to the scrap value figures.
Another question: Dec 2016 Question 2(a)
How is the exchange rate calculated for the cost of sales figures?
Previous rate: C$1= V$1.40 and current rate: C$1 = V$1.50why is it deducted from minus 1 (-1) ?
Also, how is the fuel tax increase for the distribution costs calculated?
3/160?Look at this thread
https://opentuition.com/topic/framiltone-sepdec-26-budgeting/
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