The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following external failure costs in 2012:
Cost of Quality Category

Required
Compute the external failure cost to percent of revenues of associated with this loss.

Question

The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following external failure costs in 2012:
Cost of Quality Category

Required
Compute the external failure cost to percent of revenues of associated with this loss.

Quizplus · Accepted Answer

D)Total cost [($14,000,000 / $325,000,000)] = .0430 = 4.30 %

The Managerial Accountant at the Candle Factory Reported $325,000,000 in Revenues