All the following costs are generally included in a Cost-of-Quality (COQ) report except:
A) Warranty claims.
B) Forgone contribution margin on lost sales.
C) The cost of making sales calls.
D) Design re-engineering costs.
E) The cost of implementing a statistical process control (SPC) system.

Question

Quizplus · Accepted Answer

The cost of making sales calls is not a direct cost associated with ensuring quality. COQ reports typically include costs associated with prevention, appraisal, and failure. Costs such as warranty claims, forgone contribution margin on lost sales, design re-engineering costs, and the cost of implementing a statistical process control system are all generally included in COQ reports.

All the Following Costs Are Generally Included in a Cost-Of-Quality