Figure 14-2 At the beginning of the year, Andrew Company initiated a quality improvement program.The program was successful in reducing scrap and rework costs.To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:

-Refer to Figure 14-2.For the current year, appraisal costs are what percentage of sales?

Question

Figure 14-2 At the beginning of the year, Andrew Company initiated a quality improvement program.The program was successful in reducing scrap and rework costs.To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
 
-Refer to Figure 14-2.For the current year, appraisal costs are what percentage of sales?

Quizplus · Accepted Answer

To find the percentage of appraisal costs for the current year, we need to divide current year's appraisal costs by current year's sales and multiply by 100.
(50,000/60,000,000) x 100 = 0.833%
Therefore, the answer is B.

Figure 14-2 at the Beginning of the Year, Andrew Company