The controller of Willson Company has computed quality costs as a percentage of sales for the past

Question:

The controller of Willson Company has computed quality costs as a percentage of sales for the past five years (2009 was the first year the company implemented a quality improvement program). This information is as follows:
The controller of Willson Company has computed quality costs as

Required:
1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality improvement program.
2. Prepare a graph that shows the trend for each quality cost category. What does the graph have to say about the success of the quality improvement program? Does this graph supply more insight than the total cost trend graph does?
3. Prepare a graph that compares the trend in relative quality costs. What does this graph tell you?

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Related Book For  answer-question

Cornerstones of Cost Management

ISBN: 978-1111824402

2nd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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