37. (Cost of quality) Sparticus Electronics’ accounting system reflected the following costs related to quality for 1999 and 2000:

1999 2000 Customer refunds for poor product quality $24,000 $18,000 Fitting machines for mistake-proof operations 8,400 12,800 Supply-line management 8,000 10,000 Disposal of waste 44,000 36,000 Quality training 28,000 30,000 Litigation claims 72,000 56,000

a. Which of these are costs of compliance and which are costs of noncompliance?

b. Calculate the percentage change in each cost and for each category.

c. Discuss the pattern of the changes in the two categories.