At the Beginning of the Year, Mike Gioulis Initiated a Quality

question 102

Multiple Choice

At the beginning of the year, Mike Gioulis 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: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Sales } & \$ 2,400,000 & \$ 2,000,000 \\\text { Scrap } & 40,000 & 30,000 \\\text { Rework } & 100,000 & 70,000 \\\text { Product inspection } & 12,000 & 18,000 \\\text { Quality training } & 4,000 & 5,000 \\\text { Material inspections } & 8,000 & 13,000\end{array}$ For the current year, prevention costs are what percentage of sales?

• A)2.50%
• B)9.30%
• C)0.25%
• D)1.80%

---

Definitions:

Diagnosed

The process of identifying a disease or condition from its symptoms by a medical professional.

Civilizing Mission

A rationale for colonization, proposing that imperialism was a duty to civilize "barbaric" societies by spreading European culture and Christianity.

Soldiers

Members of an army, trained and employed to engage in combat and military operations, serving the defense and interests of their country.

France

A country in Western Europe known for its history, art, fashion, and cuisine, famous for landmarks like the Eiffel Tower and the Louvre Museum, and significant for its influence on world politics, culture, and economy.