Internal Reports on Quality at the Acme Publishing Company Generated

question 75

Multiple Choice

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year:
$\begin{array}{ll}\text{Total sales}&\$ 1,000,000\\\text{Costs of quality:}&\\\text { Prevention } & 44,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000\end{array}$
Compute the ratio of costs of conformance to total costs of quality.

• A) 44.6%
• B) 47.6%
• C) 50.1%
• D) 100%

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Definitions:

Businesses Community

A group of companies and organizations operating within the same industry or geographic area, often sharing resources, information, and economic interests.

Cash

Money in the form of coins or banknotes, especially that used to pay for goods or services.

Special Kind

A unique or particular type or category that stands out from others.

Draft

An instrument validating an order by a drawer to a drawee to pay a payee.