Chapter 14, Problem 3CE

Ross Company implemented a quality improvement program and tracked the following for the five years:

By cost category as a percentage of sales for the same period of time:

Required:

1. 1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical). Comment on the message of the graph.
2. 2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?
3. 3. What if management would like to have the trend in relative distribution of quality costs? Express this as a bar graph and comment on its significance.