In 2023, a manufacturing company instituted a total quality management (TQM) program producing the comparative report shown below:

On the basis of this report, which one of the following statements is most likely correct?

a. An increase in conformance costs resulted in a higher-quality product and, therefore, a decrease in nonconformance costs.

b. An increase in inspection costs was solely responsible for the decrease in quality costs.

c. Quality costs such as scrap and rework decreased by 48%.

d. Quality costs such as returns and repairs under warranty decreased by 40%.

e. Nonconformance costs increased by 50% and conformance costs decreased by approximately 47%.

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Summary COQ Report (in thousands) 2022 2023 % Chang $ 200 $ 300 +50 Prevention costs Appraisal costs 210 315 +50 Internal failure costs 190 114 -40 External failure costs 1,200 621 -48 Total COQ $1,800 $1,350 -25