A quality loss function includes all of the following costs except A) the cost of scrap and repair B) the cost of customer dissatisfaction C) inspection, warranty, and service costs D) sales costs E) costs to society

Question

Quizplus · Accepted Answer

Sales costs are not included in a quality loss function. A quality loss function only includes costs associated with quality, such as scrap and repair costs, customer dissatisfaction costs, inspection, warranty, and service costs, and costs to society. Sales costs are related to marketing and advertising expenses, not to quality, hence they are not included in a quality loss function.

A Quality Loss Function Includes All of the Following Costs