The Hartono Corporation manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2013 and 2012 (in thousands):
1. Classify the cost items in the table into prevention, appraisal, internal failure, or external failure categories.
2. Calculate the ratio of each COQ category to sales in 2012 and 2013. Comment on the trends in costs of quality between 2012 and 2013.
3. Give two examples of nonfinancial quality measures that Hartono Corporation could monitor as part of a total quality-control effort.