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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
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