The system that identifies the costs of producing low-quality items is called

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The system that identifies the costs of producing low-quality items is called the cost of quality. It takes into account both the cost of preventing defects (like training, equipment maintenance, quality control) and the cost of fixing defects (like rework, scrap, warranty repairs). By identifying the cost of poor quality, businesses can take steps to improve their processes and reduce waste. The other choices (A, B, C, and E) are related to different aspects of business management but do not specifically address the cost of poor quality.

The System That Identifies the Costs of Producing Low-Quality Items