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The Following Information Pertains to James Adams Corp Quality Costs Are What Percentage of Sales?
A)16

Question 103

Multiple Choice

The following information pertains to James Adams Corp. for the current year:  Sales $3,125,000 Internal failure costs 450,000 External failure costs 180,000 Appraisal costs 126,000 Prevention costs 90,000 Cost of goods sold 1,350,000\begin{array} { l r } \text { Sales } & \$ 3,125,000 \\\text { Internal failure costs } & 450,000 \\\text { External failure costs } & 180,000 \\\text { Appraisal costs } & 126,000 \\\text { Prevention costs } & 90,000 \\\text { Cost of goods sold } & 1,350,000\end{array} Quality costs are what percentage of sales?


A) 16.0%
B) 27.1%
C) 7.0%
D) 3.0%

Correct Answer:

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