Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2017 and 2018 (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 2017 and 2018. Comment on the trends in costs of quality between 2017 and 2018. 

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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2018 2017 Sales €12 500 €10 000 Line inspection Scrap Design engineering Cost of returned goods Product-testing equipment Customer support Rework costs 85 110 200 250 240 100 145 60 50 50 30 40 135 160 Preventive equipment maintenance Product liability claims Incoming materials inspection Breakdown maintenance 90 35 100 200 40 20 40 90 Product-testing labour Training Warranty repair Supplier evaluation 75 220 120 45 200 300 50 20