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

question 96

Multiple Choice

At the beginning of the year, Kowalski 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: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Sales } & \$ 3,000,000 & \$ 3,000,000 \\\text { Quality training } & 3,000 & 4,500 \\\text { Material inspections } & 7,500 & 12,000 \\\text { Scrap } & 60,000 & 45,000 \\\text { Rework } & 120,000 & 75,000 \\\text { Product inspection } & 15,000 & 30,000 \\\text { Product warranty } & 105,000 & 82,500\end{array}$ If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by

• A)$255,000.
• B)$174,000.
• C)$91,500.
• D)$37,500.

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Definitions:

Behaviourist Theory

A psychological approach that emphasizes the study of observable behaviors, especially as they pertain to the process of learning, without reference to mental states.

Overregularizations

A language development error where children apply grammatical rules too broadly, often observed in early language learning.

Nativist Theory

This theory posits that certain skills or abilities are innate and hardwired into the brain at birth.

Interactionist Theories

Theories that explain human behavior and social phenomena through the interplay between individual actions and societal influences.