Which of the following are typically not included in COQ reports?
A) lost contribution margin from lost sales due to poor quality
B) lost production that results from poor quality
C) lower prices that result from poor quality
D) allocation bases
E) lost contribution margin from lost sales and/or from lost production, nor lower prices that result form poor quality

Question

Quizplus · Accepted Answer

Typically, COQ reports do not include lost contribution margin from lost sales and/or from lost production, nor lower prices that result from poor quality. The COQ report focuses on the costs of poor quality and the expenses incurred in preventing, detecting, and correcting non-conformance. Allocation bases are typically included in COQ reports as they help in understanding the distribution of the costs of poor quality across various processes and products.

Which of the Following Are Typically Not Included in COQ