The Following Information Pertains to Kanyon, Inc -Refer to the Figure

question 137

Multiple Choice

The following information pertains to Kanyon, Inc., for the current year:
$$\begin{array} { l r } \text { Sales } & \$ 2,000,000 \\\text { Internal failure costs } & 250,000 \\\text { External failure costs } & 100,000 \\\text { Appraisal costs } & 70,000 \\\text { Prevention costs } & 50,000 \\\text { Cost af goods sold } & 750,000\end{array}$$
-Refer to the figure.Quality costs are what percentage of sales?

• A)2.5%
• B)6.0%
• C)15.0%
• D)23.5%

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Definitions:

Net Loss

Occurs when a company's expenses exceed its revenues during a specific period, indicating a negative financial performance.

Capital Account

An account on the balance sheet that shows the equity and debt investments into a country minus its investments abroad.

Salary

Regular payment from an employer to an employee, typically expressed as an annual sum and paid in monthly or biweekly intervals.

Capital Balances

This term indicates the amount of money in an entity’s capital account, reflecting initial investments and subsequent adjustments for profits, losses, and withdrawals.