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Calculation Of Ratio Of Prevention Of Costs To Sales

Question

The following data relates to the financial year ended 30 June 20X9 for Westfall Pty Ltd.
                                                   $
Sales                                       600,000
Quality training                             2280
Materials inspection                       4000
Scrap                                         15000
Rework                                      24000
Product inspection                        6000
Product warranty                        12000

Based on this data, what is the ratio of prevention costs to sales?

A. 0.38 percent
B. 1.00 percent
C. 1.05 percent
D. 1.38 percent


Summary

This multiple choice question belongs to Finance and it is about calculation of the ratio of prevention of costs to sales for a company.

Total Word Count NA

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