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

question 42

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: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Sales } & \$ 3,000,000 & \$ 3,000,000 \\\text { Quality training } & 3,000 & 4,500 \\\text { Material inspections } & 7,500 & 12,000 \\\text { Scrap } & 60,000 & 45,000 \\\text { Rework } & 120,000 & 75,000 \\\text { Product inspection } & 15,000 & 30,000 \\\text { Product warranty } & 105,000 & 82,500\end{array}$ For the current year, external failure costs are what percentage of sales?

• A)4.25%
• B)2.75%
• C)2.50%
• D)1.50%

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Definitions:

Tertiary-Level Interventions

advanced medical treatments and procedures that are utilized after primary and secondary prevention methods, typically involving specialized and highly complex care.

Dietary Restrictions

Limitations on the intake of specific foods or nutrients for health, religious, ethical, or cultural reasons.

Denial

Unconscious refusal to admit an unacceptable idea.

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety arising from unacceptable thoughts or feelings.