Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 3

COQ Histogram; Spreadsheet Application Genova Company classifies its costs of quality into four categories. The costs of quality (COQ) as a percentage of cost of goods sold for the last three years are as follows:

Required
1. Use a spreadsheet to prepare a histogram that shows the costs of quality (COQ) trends as a percentage of cost of goods sold.
2. Comment on the trends in cost of quality (COQ) over the three-year period from 2016 to 2018.
3. What cost of quality can the company expect as a percentage of its cost of goods sold in 2019 Explain.