ACC - Ross Company implemented a quality improvement program

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

Quality costs Actual sales costs as a percentage of sales
2009 500,000 2,000,000 25.00%
2010 495,000 2,200,000 22.50%
2011 450,000 2,400,000 18.75%
2012 434,000 2,480,000 17.50%
2013 400,000 3,200,000 12.50% 

1.Prepare a bar graph that reveals the trend in quality cost s a percentage of sales(time on the horizontial axis and percentages on the vertical).Comment on the message of the graph.

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

Prevention Appraisal internal fail external failure
2009 2.50% 2.50% 7.50% 12.50%
2010 3.75% 3.00% 5.00% 10.75%
2011 3.75% 3.75% 3.75% 7.50%
2012 5.00% 3.75% 3.13% 5.63%
2013 6.38% 3.00% 2.50% 1.90%
2.Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you? 

    • 10 years ago
    ACC - Ross Company Bar Graph Soln.
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