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

question 143

Multiple Choice

At the beginning of the year, Andrew 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:
$\begin{array}{lrr} &\underline{\text {Preceding Year}}& \underline{\text {Current Year}}\\\text { Sales } & \$ 2,400,000 & \$ 2,400,000 \\\text { Quality training } & 30,000 & 48,000 \\\text { Material inspections } & 7,000 & 8,000 \\\text { Scrap } & 48,000 & 30,00 \\\text { Rework } & 60,000 & 48,000 \\\text { Product inspection } & 10,000 & 12,000 \\\text { Product warranty } & 36,000 & 24,000\end{array}$
-Refer to the figure.For the current year,what percentage of sales are prevention costs?

Definitions:

Urbanization

Urbanization is the process by which cities grow and higher proportions of the population come to live in urban areas, often associated with shifts from rural to urban livelihoods.

Urban Way

Refers to the lifestyle and cultural norms prevalent in urban areas as opposed to rural settings.

Concentric Zone Model

A social model that describes urban land use in concentric circles, with the central business district at the center.

Ecological Succession

In the theory of human ecology refers to the process by which a distinct urban group moves from one area to another and a second group comes in to replace the group that has moved out.