Suppose That the Data in the Following Table Reflects the Prices

question 178

Multiple Choice

Suppose that the data in the following table reflects the prices in an economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | } \hline \text { Year } & \text { CPI } \\& ( \mathbf { 2 0 1 7 } = \mathbf { 1 0 0 } ) \\\hline 2017 & 100 \\\hline 2018 & 120 \\\hline\end{array}$$

• A) 2%
• B) 5%
• C) 20%
• D) 10%

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Definitions:

Internal Failure Costs

Internal Failure Costs are expenses incurred when a product fails to meet quality standards before it is shipped to customers, including scrap, rework, and downtime.

External Failure Costs

Costs that arise when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document detailing the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Prevention Costs

Expenses incurred to avoid defects in products or services, including costs related to quality control and training.