(Cost of quality) Bronson’s Bronze Works has gathered the following data onits quality costs for 1999 and 2000:
|
Defect Prevention Costs |
1999 |
2000 |
|
Quality training |
$8,000 |
$9,500 |
|
Quality technology |
6,000 |
8,000 |
|
Quality production design |
4,000 |
9,000 |
|
External Failure Costs |
||
|
Warranty handling |
$15,000 |
$10,000 |
|
Customer reimbursements |
11,000 |
7,200 |
|
Customer returns handling |
7,000 |
4,000 |
a. Compute the percentage change in the two quality cost categories from 1999 to 2000.
b. Write a brief explanation for the pattern of change in the two categories.