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

question 111

Multiple Choice

At the beginning of the year, Grant 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:
$$\begin{array} { l r r } & \text { Preceding Year } & \text { Current Year } \\\text { Sales } & \$ 3,000,000 & \$ 3,000,000 \\\text { Quality training } & 3,000 & 4,500 \\\text { Material inspections } & 7,500 & 12,000 \\\text { Scrap } & 60,000 & 45,000 \\\text { Rework } & 120,000 & 75,000 \\\text { Product inspection } & 15,000 & 30,000 \\\text { Product waranty } & 105,000 & 82,500\end{array}$$
-Refer to the figure.For the current year,what percentage of sales are internal failure costs?

• A)1.50%
• B)2.50%
• C)2.90%
• D)4.00%

---

Definitions:

Everyday Actor

Someone who approaches the world by using knowledge that is practical or taken for granted.

Everyday Life

The daily activities, routines, and experiences of individuals, emphasizing the mundane and ordinary aspects of living.

Social Sciences

The disciplines that use the scientific method to examine the social world.

Sociology

The study of society, social relationships, and the functioning of social institutions.