The Hormosa Company Classifies Its Overall Cost of Quality (COQ)

question 30

Essay

The Hormosa Company classifies its overall Cost of Quality (COQ) into four categories. COQ components, as a percentage of cost of goods sold for the last three years, are as follows:
Required:
1. Prepare a histogram that shows the COQ trends for each of the four components of COQ as well as total COQ over the period 2011 through 2013. Note: Index numbers (1) through (4) may be used in place of a description key. For example, in labeling your histogram you can use "1" to refer to "Prevention Costs," etc.
2. Of what interpretive or managerial value is the histogram you prepared, both in a general sense and as it relates to the data set at hand?

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Definitions:

Enforceable Contract

A legal agreement that is valid under the law and can be upheld in court.

Constructively Evicted

A situation in rental agreements where the tenant is forced to leave due to the landlord's failure to keep the property habitable.

Sole Survivor

The only remaining person after an event that causes death or disappearance to all others involved, often used in the context of accidents or disasters.

Best Evidence Rule

The legal rule that holds that the courts generally accept into evidence only the original of a writing, not a copy.