Genova Company classifies its costs of quality into four categories. The costs of quality (COQ) as a percentage of cost of goods sold for the last three years are as follows:

Required

1. Use a spreadsheet to prepare a histogram that shows the costs of quality (COQ) trends as a percentage of cost of goods sold.

2. Comment on the trends in cost of quality (COQ) over the 3-year period from 2019 to 2021.

3. Based on the observed trends, what total cost of quality can the company expect in 2022? Explain.

Transcribed Image Text:

2019 2021 2020 Prevention costs Appraisal costs Internal failure costs External failure costs 1.00% 3.00 2.00% 1.50 14.00 12.00 4.00% 2.50 27.00 23.00 18.00 31.00