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

question 41

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, external failure costs are what percentage of sales?

• A)9.30%
• B)5.00%
• C)2.50%
• D)7.50%

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Definitions:

Breach Of Trust And Confidence

This legal term refers to an act that undermines the trust and confidence between parties in a relationship, particularly in employment, where an employer significantly violates an implied term of mutual trust and confidence.

Shareholder Votes

The process by which shareholders express their preferences or make decisions on corporate matters, typically at annual meetings.

Employment Contracts

Legal agreements between employers and employees specifying the terms of employment, including duties, compensation, and duration of the employment.

Negligence Or Mismanagement

Failure to exercise appropriate care or the mismanagement resulting in harm or loss.