2 AMD has come very close to meeting the planned outcomes (only 0.36 percent short overall) . thus , management is belief that investing an additional 255 percent in control costs would produce a 20 percent reduction in failure costs seems to be validated
3 scrap would be expected to vary with sales . thus , a 20 percent increase in sales would cause a 20 percent increase in budgeted scrap costs : 44000 X 1.20 = 52800 . this would create a favorable scrap variance of 2800 (50000-52800) . all variable costs would have increased budgets , and the budgeted variance would be more favorable than initially calculated . quality training is likely a discretionary fixed cost and so its budget would not be affected by changes in sales revenue
Multiple period trend report the interim quality report provides management with information concerning the within period progress measured relative to specific goals . also useful is a picture of how the quality improvement program has been doing since its inception . is the multiple period trend the overall change in quality costs moving in the right direction? Are significant quality gains being made each period? Answer to these questions can be given by providing a chart or graph that tracks the change in quality from the beginning of the program to the present . such a graph is called a multiple period quality trend report . by plotting quality costs as a percentage of sales against time , the overall trend in quality program can be assessed . the first year plotted is the year prior to the implementation of the quality improvement program. Provides a detailed example of multiple period trend reporting