(Cost of quality) Bronson’s Bronze Works has gathered the following data on its

Question

(Cost of quality) Bronson’s Bronze Works has gathered the following data on its quality costs for 1999 and 2000:
Defect Prevention Costs 1999 2000
Quality training $8,000 $9,500
Quality technology 6,000 8,000
Quality production design 4,000 9,000
External Failure Costs
Warranty handling $15,000 $10,000
Customer reimbursements 11,000 7,200
Customer returns handling 7,000 4,000
a. Compute the percentage change in the two quality cost categories from 1999 to 2000.
b. Write a brief explanation for the pattern of change in the two categories.

Explanation / Answer

Add very cost of year 1999 , you will get 51000. And add every cost of year 2000, you will get 47700. Then subtract year 2000 cost from 1999 cost . You will get that answer.

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