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 (1998 was the first year the company implemented a quality improve¬
ment program). This information is presented below:
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 does.the total cost trend graph? What does the graph have to say about the distribution of quality costs in 1997?
Step by Step Answer:
Cost Management Accounting And Control
ISBN: 9780324002324
3rd Edition
Authors: Don R. Hansen, Maryanne M. Mowen