The following information pertains to James Adams Corp. for 2016: Quality costs are what percentage of sales?
A) 16.0%
B) 27.1%
C) 7.0%
D) 3.0%

Question

The following information pertains to James Adams Corp. for 2016:  Quality costs are what percentage of sales?
A) 16.0% 
B) 27.1% 
C) 7.0% 
D) 3.0%

Quizplus · Accepted Answer

The total quality costs for James Adams Corp. in 2016 were $54,300. To find the percentage of sales, divide quality costs ($54,300) by total sales ($200,700) and multiply by 100: ($54,300/$200,700) * 100 = 27.1%

The Following Information Pertains to James Adams Corp