Quality Costs, Excel LO7
Tanner Leathers implemented a quality control and improvementprogram in 2012. The quality control manager, a daughter of thecompany’s president, developed the following table, which shows thecomponents of quality cost as a percentage of the company’s salesfor the last five years:
|
Year |
Prevention |
Detection |
Internal Failure |
External Failure |
|---|---|---|---|---|
|
2012 |
3% |
4% |
9% |
13% |
|
2013 |
4 |
5 |
8 |
11 |
|
2014 |
5 |
6 |
6 |
8 |
|
2015 |
6 |
5 |
4 |
6 |
|
2016 |
7 |
2 |
1 |
2 |
Required
A.Prepare
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