(Cost of quality) Sparticus Electronics’ accounting system reflected the following costs related to quality for 1999 and 2000:
|
1999 |
2000 |
|
|
Customer refunds for poor product quality |
$24,000 |
$18,000 |
|
Fitting machines for mistake proof operations |
8,400 |
12,800 |
|
Supply line management |
8,000 |
10,000 |
|
Disposal of waste |
44,000 |
36,000 |
|
Quality training |
28,000 |
30,000 |
|
Litigation claims |
72,000 |
56,000 |
a. Which of these are costs of compliance and which are costs of noncompliance?
b. Calculate the percentage change in each cost and for each category.
c. Discuss the pattern of the changes in the two categories.