At the beginning of the year, Devonshire Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Preceding Year Current Year Sales $2,400,000 $2,400,000 Quality training 30,000 48,000 Material inspections 7,000 8,000 Scrap 48,000 30,000 Rework 60,000 48,000 Product inspection 10,000 12,000 Product warranty 36,000 24,000 For the current year, appraisal costs are what percentage of sales? a.0.500% b.0.333% c.3.333% d.0.833%
At the beginning of the year, Devonshire Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Preceding Year Current Year Sales $2,400,000 $2,400,000 Quality training 30,000 48,000 Material inspections 7,000 8,000 Scrap 48,000 30,000 Rework 60,000 48,000 Product inspection 10,000 12,000 Product warranty 36,000 24,000 For the current year, appraisal costs are what percentage of sales? a.0.500% b.0.333% c.3.333% d.0.833%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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At the beginning of the year, Devonshire Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
| Preceding Year | Current Year | |
| Sales | $2,400,000 | $2,400,000 |
| Quality training | 30,000 | 48,000 |
| Material inspections | 7,000 | 8,000 |
| Scrap | 48,000 | 30,000 |
| Rework | 60,000 | 48,000 |
| Product inspection | 10,000 | 12,000 |
| Product warranty | 36,000 | 24,000 |
For the current year, appraisal costs are what percentage of sales?
a.0.500%
b.0.333%
c.3.333%
d.0.833%
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