Faulty products sold as profit, company's accounting practices flawed, costing customers and undermining quality control.
The study looked at how a company in Gresik deals with damaged products when setting their production costs. They found out that the company doesn't record or report damaged products in their cost reports. This means the company could be showing higher profits than they actually have. If they included the sales of damaged products in their reports, their costs would be lower, and they could potentially make more profit. The company was advised to improve quality control during production to reduce product damage and to account for the sale of damaged products in their cost reports to show a more accurate financial picture.