17-70 2-5

nuxement and Control of Quality 733 2016 2017 Sales Materials inspection Production inspection Finished product inspection Preventive equipment maintenance Scrap (net Warranty repairs Product design engineering Vendor certification Direct costs of returned goods Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product-liability settlement Emergency repair and maintenance $16,000 300 160 250 20 500 700 150 10 275 40 60 210 70 240 $20,000 60 125 70 60 300 450 270 60 80 140 60 90 40 200 360 200 60 75 culate the ratio of each COQ category to revenues in each of the two years. (Round answers to two decimal places.) 2. Cal 3. Comment on the results. measures listed in the table, what nonfinancial measures might Acme monitor in its effort to achieve overall improvements in quality? 5. Are financial or nonfinancial quality measures likely of more use to: (a) managers? (b) operating personnel? Why