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Use the Following Information About the Cost of Quality for a Company

Question 15

Multiple Choice

Use the following information about the cost of quality for a company  Staff training for quality system 8,000 Warranty repairs 6,000 Quality testing during production 12,000 Customer discounts for faults 5,000 Waste & rework during production 5,000 Quality system costs 15,00051,000\begin{array} { | l | r | } \hline \text { Staff training for quality system } & 8,000 \\\hline \text { Warranty repairs } & 6,000 \\\hline \text { Quality testing during production } & 12,000 \\\hline \text { Customer discounts for faults } & 5,000 \\\hline \text { Waste \& rework during production } & 5,000 \\\hline \text { Quality system costs } & 15,000 \\\hline & 51,000 \\\hline\end{array}
-The principal conclusion that can be drawn from this information is that the company:


A) Has spent a lot of money on quality management
B) Has invested money in conformance that has reduced non-conformance costs
C) Has high non-conformance costs because insufficient spending has taken place on conformance costs
D) Has not spent enough money on quality systems

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