Compute the percentage change in the two quality cost
Course:- Accounting Basics
Reference No.:- EM131900385

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Problem - Cost Accounting (Cost of Quality)

Sheila's Sandal Works has gathered the following data on its quality costs for 2002 and 2003:

Defect prevention costs 2002 2003

Quality rating $9,000 $10,500

Quality Technology $7,500 $10,000

Quality production design $4,000 $9,000

External failure costs 2002 2003

Warranty Handling $15,000 $10,000

Customer Reimbursements $11,000 $7,200

Customer Returns Handling $7,000 $4,000

1. Compute the percentage change in the two quality cost categories from 2002 to 2003.

2. White a brief explanation of the pattern of change in the two categories.

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