Practice test

1) Two years ago the price index appropriate to the cost of material X had a value of 120. It now has a value of 160. If material X costs $2,000 per kg today, what would its cost per kg have been two years ago? Am I correct if I say $1,500 is the price of material X two years ago (2000*120/160) 2) A customer returns a faulty products to a firm for repair under warranty scheme. the firm operates a total quality management system. Which of the following best describe the cost of the repair? A. A prevention cost B. An external failure cost C. An internal failure cost D. An appraisal cost