Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2006 and 2007 (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 2006 and 2007. Comment on the trends in costs of quality between 2006 and 2007.
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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2007 2006 Sales Line inspection Scrap Design engineering Cost of returned goods Product-testing equipment Customer support Rework costs Preventive equipment maintenance Product liability claims Incoming materials inspection Breakdown maintenance Product-testing labour Training Warranty repair Supplier evaluation 12 500 85 200 240 145 50 30 135 90 100 40 40 75 120 200 50 10000 110 250 100 60 50 40 160 35 200 20 90 220 45 300 20