(Cost of quality) Electronia Components ’ accounting system reflected the fol-
lowing costs related to quality for 2006 and 2007:

a. Which of these are costs of compliance, and which are costs of non- compliance?

b. Calculate the percentage change in each cost and for each category.
C. Discuss the pattern of the changes in the two categories. LO.1

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Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply-line management Disposal of waste Quality training Litigation claims 2006 $ 48,000 2007 $ 36,000 18,800 27,600 16,000 20,000 88,000 72,000 56,000 60,000 144,000 112,000