In 2017 a manufacturing company instituted a total quality management (TQM) program producing the report shown below:

On the basis of the above report, which one of the following statements is most likely correct?
a. An increase in conformance costs resulted in a higher-quality product and, therefore, a decrease in nonconformance costs.
b. An increase in inspection costs was solely responsible for the decrease in quality costs.
c. Quality costs such as scrap and rework decreased by 48%.
d. Quality costs such as returns and repairs under warranty decreased by 40%.
e. Nonconformance costs increased by 50% and conformance costs decreased by approximately 47%.

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Summary CoQ Report in thousands) 2016 2017 %Change Prevention costs Appraisal costs Internal failure costs External failure costs $300 $315 $114 621 $1800 $1.350 +50 +50 -40 -48 -25 $200 $210 $190 $1.200 Total COQ