The following information pertains to Beige, Inc., for current year: $$\begin{array} { l r }
\text { Sales } & \$ 1,000,000 \
\text { Internal failure costs } & 150,000 \
\text { External failure costs } & 200,000 \
\text { Apprai sal costs } & 50,000 \
\text { Prevention costs } & 30,000 \
\text { Cost of goods sold } & 600,000
\end{array}$$ Which of the following expresses the quality costs as a percentage of sales? (Round to two decimal places.)
A)23.89%
B)57.22%
C)19.44%
D)4.44%

Question

The following information pertains to Beige, Inc., for current year: $$\begin{array} { l r } 
\text { Sales } & \$ 1,000,000 \
\text { Internal failure costs } & 150,000 \
\text { External failure costs } & 200,000 \
\text { Apprai sal costs } & 50,000 \
\text { Prevention costs } & 30,000 \
\text { Cost of goods sold } & 600,000
\end{array}$$ Which of the following expresses the quality costs as a percentage of sales? (Round to two decimal places.)
A)23.89%
B)57.22%
C)19.44%
D)4.44%

Quizplus · Accepted Answer

Quality costs include internal failure costs, external failure costs, appraisal costs, and prevention costs, totaling $430,000 ($150,000 + $200,000 + $50,000 + $30,000). The percentage of sales is calculated as ($430,000 / $1,000,000) * 100 = 43.00%.

The Following Information Pertains to Beige, Inc Which of the Following Expresses the Quality Costs as a \begin{array}