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:
[LO 17-1, 17-5]
[LO 17-5]
2019 2020 2021
Prevention costs 1.00% 4.00% 2.00%
Appraisal costs 3.00 2.50 1.50
Internal failure costs 27.00 23.00 14.00
External failure costs 31.00 18.00 12.00
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 3-year period from 2019 to 2021.
3. Based on the observed trends, what total cost of quality can the company expect in 2022? Explain.
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