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Sheila's Sandal Works has gathered the following data on its quality costs for 2002 and 2003:

Defect prevention costs 2002 2003
Quality rating $9,000 $10,500
Quality Technology $7,500 $10,000
Quality production design $4,000 $9,000

External failure costs 2002 2003
Warranty Handling $15,000 $10,000
Customer Reimbursements $11,000 $7,200
Customer Returns Handling $7,000 $4,000

1. Compute the percentage change in the two quality cost categories from 2002 to 2003.

2. White a brief explanation of the pattern of change in the two categories.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941659

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