The following data relates to the financial year ended 30, Ask an Expert

Management Studies

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

Additional Requirement

This kinds of problem belongs to Finance and it is about estimate of the ratio of prevention of costs to sales for a company.

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