If Management Is Reviewing a Multiple-Period Trend Graph That Shows

question 84

Multiple Choice

If management is reviewing a multiple-period trend graph that shows individual quality cost categories,what might they expect to see?

• A)overall quality costs decreasing as a percentage of sales,with prevention costs,as a category,increasing over time
• B)overall quality costs decreasing as a percentage of sales,with all categories decreasing over time
• C)overall quality costs increasing as a percentage of sales,with external failure costs decreasing and prevention costs increasing
• D)overall quality costs remaining the same as a percentage of sales,with prevention and appraisal costs increasing over time

Recognize the long-term implications of capital investment decisions on operations.

Understand how depreciation impacts cash flow and investment analysis.

Calculate and understand the significance of the cash payback method in capital budgeting.

Understand the concept of payback period and how it is calculated.