Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2021 and 2022 (in €000):

Required

1 Classify the cost items in the table into prevention, appraisal, internal failure or external failure categories.
2 Calculate the ratio of each COQ category to sales in 2021 and 2022. Comment on the trends in costs of quality between 2021 and 2022.
3 Give two examples of non-financial quality measures that Alcazarquivir could monitor as part of a total-quality-control effort.

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2022 2021 Sales 12 500 10 000 Line inspection 85 110 Scrap 200 250 Design engineering 240 100 Cost of returned goods 145 60 Product-testing equipment 50 50 Customer support 30 40 Rework costs 135 160 Preventive equipment maintenance 90 35 Product liability claims 100 200 Incoming materials inspection 40 20 Breakdown maintenance 40 90 Product-testing labour 75 220 Training Warranty repair Supplier evaluation 120 45 200 300 50 20