At the Beginning of the Year, Devonshire Company Initiated a Quality

question 53

Multiple Choice

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: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Sales } & \$ 2,400,000 & \$ 2,400,000 \\\text { Quality training } & 30,000 & 48,000 \\\text { Material inspections } & 7,000 & 8,000 \\\text { Scrap } & 48,000 & 30,000 \\\text { Rework } & 60,000 & 48,000\\\text { Product inspection } & 60,000 & 12,000 \\\text { Product warranty } & 10,000 & 24,000\end{array}$ For the current year, internal failure costs are what percentage of sales?

• A)4.25%
• B)3.25%
• C)2.00%
• D)1.25%

Recognize the use of observation as a research method and its applications.

Identify the use of in-depth interviews and focus groups for detailed understanding of consumer behavior.

Understand the design and application of structured and unstructured questions in research.

Grasp the concept of data mining and its usage in analyzing customer patterns and behaviors.

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Definitions:

Collective Bargaining Agreements

Legal contracts between employers and workers' unions outlining wages, hours, benefits, and working conditions.

Rank and File Approval

The process by which ordinary members of an organization, particularly a union, endorse decisions or policies, typically through voting.

Pattern Bargaining

A labor negotiation strategy where the terms agreed upon in one bargaining unit or company serve as a model for negotiations in others.

Concession Bargaining

A negotiation process in which the labor union agrees to give up certain benefits or conditions in exchange for something else from the employer.