At the Beginning of the Year, Jim Jackson Initiated a Quality

question 41

Multiple Choice

At the beginning of the year, Jim Jackson 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:
$\begin{array}{lrr}&\underline{\text { Preceding Year }} &\underline{\text { Current Year}}\\\text { Sales } & \$ 2,400,000 & \$ 2,000,000 \\\text { Scrap } & 40,000 & 30,000 \\\text { Rework } & 100,000 & 70,000 \\\text { Product inspection } & 12,000 & 18,000 \\\text { Quality training } & 4,000 & 5,000 \\\text { Material inspections } & 8,000 & 13,000 \\\text { Product warranty } & 80,000 & 50,000\end{array}$

-Refer to the figure.For the current year,what percentage of sales are prevention costs?

• A)0.25%
• B)1.80%
• C)2.50%
• D)9.30%

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Definitions:

School Settings

The environmental and social context within which educational instruction and activities take place, influencing learning outcomes and socialization.

Multi-Dimensional

Characterized by or involving several dimensions or aspects, offering a more complex approach or analysis.

Material Consequences

Tangible or physical outcomes resulting from actions, decisions, or policies.

Chilly Climate

The term used to describe an unwelcoming or hostile atmosphere, often referring to gender discrimination in educational and workplace environments.