Which of the following is true of COQ measures?
A) They forecast customer satisfaction and employee satisfaction, which are useful indicators of long-run performance.
B) They help managers evaluate costs and benefits of incurring prevention and appraisal costs
C) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.
D) They provide immediate short-run feedback on whether quality-improvement efforts are succeeding.

Question

Quizplus · Accepted Answer

COQ measures, or Cost of Quality measures, are used to help managers evaluate the costs and benefits of incurring prevention and appraisal costs. They identify the costs associated with preventing defects or finding and correcting them before they reach customers. They also identify the costs associated with defects that do reach customers, such as warranty repairs and customer dissatisfaction. While they may indirectly impact customer and employee satisfaction, their primary purpose is to evaluate the costs of quality control measures. They do not provide immediate short-run feedback but are used to evaluate long-term performance. They may highlight financial processes that need improvement, but their focus is on quality control costs.

Which of the Following Is True of COQ Measures