Chapter 18, Problem 18.1Q

Why is there an unmistakable trend in manufacturing to improve quality?

To determine

To explain: The presence of unmistakable trend in manufacturing to improve quality.

Explanation of Solution

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing a company can reduce the cost burden and increase the profit margin.

Companies are focusing more on the improvement in the quality of product and reduce the defects in the product. By this strategy the per unit cost reduces and profit margin increases.

• Good quality product attracts the consumer and lead to more sales and good name in the market.
• With the proper utilization of resources the company reduces wastage and increase profit.

Thus, manager has to reduce spoilage to increase the sales