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 costs of goods sold.
2. Comment on the trends in cost of quality (COQ) over the three-year period from 2010 to 2012.
3. What cost of quality can the company expect as a percentage of its cost of goods sold in 2013?Explain.

Transcribed Image Text:

2011 4.00% 2.50 23.00 2012 2010 1.00% 3.00 2.00% 1.50 Prevention costs Appraisal costs Internal failure costs 27.00 External failure costs 31.00 8.00 12.00 14.00