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(Solved): The following data outlines the costs of conformance and non-conformance, extracted from Conchita Lt ...



The following data outlines the costs of conformance and non-conformance, extracted from Conchita Ltd's cost of quality report for the year ended 31 December 2023. Conchita's Statement of Comprehensive Income for the same period indicated sales revenue of R100 million. INFORMATION Time l Not yet Marked F Flag Item Quality cost components R Quality engineering 700 000 Machine downtime 1 930 000 Inspection of materials received 502 500 Supplier reviews 505 000 V Handling customer complaints and warranty repairs 2 550 000 VI Scrap and reworks 2 612 500 VIII Preventive maintenance 267 500 VIII Inspection of work in progress and completed units 400 000 IX Foregone contribution from lost sales 3 700 000 X Quality audits and testing equipment 727 500 XI Returns and recalls 3 587 500 XII Retesting 1 590 000 XIIII Quality training costs 220 000 Based on the provided information, which of the following statements is accurate? • A. In the year ending 31 December 2023, Conchita Ltd allocated approximately 1.63% of its revenue to appraise quality-related matters. • ?. In the year ending 31 December 2023, Conchita Ltd allocated approximately 1.93% of its revenue to prevent quality issues.



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