The Following Information Pertains to James Adams Corp Quality Costs Are What Percentage of Sales?
A)16

question 5

Multiple Choice

The following information pertains to James Adams Corp. for the current year: $$\begin{array} { l r } \text { Sales } & \$ 3,125,000 \\\text { Internal failure costs } & 450,000 \\\text { External failure costs } & 180,000 \\\text { Appraisal costs } & 126,000 \\\text { Prevention costs } & 90,000 \\\text { Cost of goods sold } & 1,350,000\end{array}$$ Quality costs are what percentage of sales?

• A)16.0%
• B)27.1%
• C)7.0%
• D)3.0%

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Definitions:

Implicit Assumption

An unstated premise or belief that underlies an argument or reasoning.

Begging the Question

A logical fallacy where an argument's premise assumes the truth of the conclusion instead of supporting it.

Proposition

A statement or assertion that expresses a judgment or opinion, capable of being true or false.

Begging the Question

A logical fallacy where the conclusion of an argument is assumed in the premise, often leading to a circular argument.