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118. The company's management accountant prepared the following Cost of Quality Report for the years 2015 and 2016. 2015 2016 Prevention costs P 125,000 P187,500

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118. The company's management accountant prepared the following Cost of Quality Report for the years 2015 and 2016. 2015 2016 Prevention costs P 125,000 P187,500 Appraisal costs 131,250 196,875 lnternal failure costs 118,750 71,250 External failure costs 750,000 388,125 Total P1 125 000 P843 750 Based on the report, which of the following statements is most likely correct? [40] A. Quality costs, such as repair or replacement or returned units, increased by 40%. B. C. D. An increase in prevention cost was solely responsible for the decrease in quality costs. An increase in conformance costs resulted in a decrease in failure costs and a higher quality product. Quality costs, such as cost of downtime on machinery while rework is being done, increased by 48%

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