Figure 14-2 at the Beginning of the Year, Devonshire Company Initiated a Initiated

Multiple Choice

Figure 14-2
At the beginning of the year, Devonshire 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, internal failure costs are what percentage of sales?

A) 4.25%
B) 3.25%
C) 2.00%
D) 1.25%