166 Chapter 6 + Exercise 4 (Cost of Quality Analysis, Nonfinancial Quality Measures) The Gabriel Corporation manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 20X3 and 20X4 (in thousands): 20X4 20X3 P12,500 P10,000 Revenues 85 110 Line inspection 200 250 Scrap 240 100 Design engineering 145 60 Cost of returned goods 50 50 Product-testing equipment 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 labor 75 220 Training 120 45 Warranty repair 200 300 Supplier evaluation 50 20 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 revenues in 20X3 and 20X4. Comment on the trends in costs of quality between 20X3 and 20X4. 3. Give two examples of nonfinancial quality measures that Gabriel Corporation could monitor as part of a total quality-control effort