4Question 3 The following cost of quality report was prepared for the years 2008 and 2009 by an inexperienced accounting clerk. The sales were $550,000 in 2008. For 2009, sales were similar to 2008 Cost of Quality Report years 2008 and 2009 2009 % of sales 2008 % of sales Prevention costs Inspection Quality engineering Product testing $6.800 39.54% 5,200 30.23 5.200 50.23 17,200 100.00% $ 4,300 32.67% 5,290 570 27.13 13,160 40.20 100.00% Interaal failure costs Systems development Supplier evaluation Supplies used in testing 34.42% 26.62 8.9 100.00% 4,120 2,855 24.12 4.860 11,835 100.00% 34.81% 4,700 3,635 320 613,655 41.07 Appraisal costs Disposal of defective products Net cost of scrap Product recalls Rework labour 28.76% 5,220 3,990 5,660 3.500 18,370 28.42% 21.72 30.81 19.05 5,100 3,900 22.00 5,400 30.46 3330 18.78 100.00% 17,730 100.00% External failure costs Warranty repairs Warranty replacements 42.79% 5721 5,100 43.97% 4,900 11.600 100.00% 11.450 100.00% Total quality cost S 56.785 S 58.215 Sales $550,000 $550,000 The clerk did not know how to categorize the amortization of testing equipment. The amortization expense was $5,000 for each year Required Prepare a cost of quality report in good form for years 2008 and 2009 3 b. Describe three advantages of nonfinancial measures of quality 4 c. Based on your answer to part a), indicate how you would evaluate the performance of the manager responsible for controlling quality. Indicate what recommendations you would make to improve the process of quality control. Justify your answer 1 d Indicate to which type of management control system a cost of quality report belongs