For the current year, appraisal costs are what percentage of sales? 3.333% 0.833% 0.500% 0.875% If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by
For the current year, appraisal costs are what percentage of sales? 3.333% 0.833% 0.500% 0.875% If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 1CMA
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Question
For the current year, prevention costs are what percentage of sales?
For the current year, appraisal costs are what percentage of sales?
- 3.333%
- 0.833%
- 0.500%
- 0.875%
If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by
![At the beginning ofthe year, National Co. initiated a quality improvement program. The program
was successful in reducing scrap and rework costs. To help assess the im pact of the quality
improvement program, the following data were collected for the curent and preceding years:
Preceding Year
P2,400,000
30,000
7,000
48,000
60,000
10,000
36,000
Current Year
P2,400,000
42,000
9,000
30,000
48,000
12,000
24,000
Sales
Quality training
Material inspections
Scrap
Rework
Product inspection
Product waranty](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb79b6d27-de15-4603-a478-0da9a65bb56a%2F1b22fe74-fad9-46f1-8173-2d4316aeb6ed%2F1ivz37d_processed.png&w=3840&q=75)
Transcribed Image Text:At the beginning ofthe year, National Co. initiated a quality improvement program. The program
was successful in reducing scrap and rework costs. To help assess the im pact of the quality
improvement program, the following data were collected for the curent and preceding years:
Preceding Year
P2,400,000
30,000
7,000
48,000
60,000
10,000
36,000
Current Year
P2,400,000
42,000
9,000
30,000
48,000
12,000
24,000
Sales
Quality training
Material inspections
Scrap
Rework
Product inspection
Product waranty
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