The four categories of quality costs in a quality cost report are:
A) external failure, product liability, prevention, and carrying.
B) external failure, internal failure, prevention, and appraisal.
C) warranty, product liability, prevention, and appraisal.
D) warranty, product liability, training, and appraisal.

Question

Quizplus · Accepted Answer

The four categories of quality costs in a quality cost report are external failure (costs associated with defects found after delivery), internal failure (costs associated with defects found before delivery), prevention (costs associated with preventing defects), and appraisal (costs associated with detecting and evaluating defects). Option A is incorrect because product liability and carrying are not categories of quality costs. Option C is incorrect because warranty is a subcategory of external failure and not a separate category of quality costs. Option D is incorrect because training is not a category of quality costs.

The Four Categories of Quality Costs in a Quality Cost