Incurred costs to exclude production of goods, that do not meet specification, are called prevention costs. Preventive costs are any expenditures incurred that are intended to minimize the number of defects in products and services.
Number of employees who left company, divided by average number of employees to calculate ratio is called
Number of employees who left company, divided by average number of employees to calculate ratio is called employee turnover ratio. Employee turnover rate is calculated by dividing the number of employees who left the company by the average number of employees in a certain period in time.
Revenues are subtracted from cost of direct materials of sold goods is to calculate
Carrying costs of inventories and price discounts related to delayed deliveries are examples of financial measures. Financial measures or financial ratios are often used as very simple mechanisms to describe the performance of a business or investment.
Basic aspects of product quality must include the design quality and conformance quality. A product is known as a quality product only when it satisfies various criteria for its functioning for the consumer.