Phelps Company Manufactures Custom-Designed Filtering Equipment for Swimming Pools and Tanks.In

question 65

Multiple Choice

Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks.In May 2014,the company incurred the following costs of quality:
-The total costs of quality as a percentage of sales were

• A)3.5%
• B)4.0%
• C)4.5%
• D)5.0%

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Definitions:

Net Profit

The amount of income that remains after subtracting all expenses, taxes, and costs from total revenue.

Monetary Items

Assets and liabilities that are to be received or paid in a fixed or determinable amount of money.

Payables

Amounts that a company owes to its creditors or suppliers for goods or services received.

Borrowings

Funds that a company or individual takes on loan from another party, to be repaid over time with interest.