The Bulldog Company incurred the following quality-related costs:

2016	2017
Calibration	$190,000	$120,000
Product design	180,000	210,000
Product liability	150,000	90,000
Product recalls	480,000	240,000
Retesting	300,000	240,000
Rework	390,000	120,000
Testing	60,000	180,000
Training	90,000	120,000
Warranty repairs	180,000	90,000

Required:

1. Calculate for each of the two years:
2. Total prevention costs
3. Total appraisal costs
4. Total internal failure costs
5. Total external failure costs
6. Provide two recommendations for improving the disclosure of COQ data for the current data set (i.e., providing more informative disclosures).
7. Based on the data in this exercise, and your solution to Requirement 1, what observations can you offer regarding COQ spending over the two-year period?