Articles

Quality Is Harder to Find than to Pay for

The ultimate responsibility of FR rests with the person manufacturing a mattress even if they are merely buying the components from suppliers and assemblying. If a mattress cover is purchased from an outside supplier, that supplier will provide a qualified prototype number for the cover. That prototype will contain the components used in the construction of the cover. When the manufacturer, or assembler puts the cover with foam or latex they then have the responsibility of doing a confirming burn test on the finished product. If the cover doesn’t pass they have the option of changeing cover suppliers.

Sales Tax on Manufacturing Supplies

When auditing a manufacturing facility you should check invoices of all suppliers of manufacturing components. Supplies or components for manufacturing a product are exempt from sales tax in until it passes to the final end user. Make sure the company you are auditing has filled out tax exempt forms for each supplier and also inspect past invoices for incorrect sales tax charge. You may work to correct past overcharges and receive credit within the same year. This situation is commonly overlooked.

In European countries and other countries around the world there is a “Value added Tax”, whereby a tax is charged on every step of a product or service as it progresses toward the end user, who then also pays a tax. This idea is being floated as a possibility in the US.