Which of the following statements about quality costs is true?
A) Both external and internal failure costs can be reduced (theoretically to zero) by paying more attention to quality issues early in the value chain.
B) Increasing expenditures related to prevention and appraisal can result in significant overall cost savings in the long run.
C) It may be prudent to increase expenditures in one or more areas in order to decrease other costs.
D) All of these are true.

Question

Quizplus · Accepted Answer

All of these statements are true. External and internal failure costs can be reduced by improving quality at an earlier stage in the value chain, increasing expenditures related to prevention and appraisal can result in overall cost savings, and it may be wise to increase spending in certain areas in order to decrease other costs in the long run.

Which of the Following Statements About Quality Costs Is True