Increasing the quality level by better products and processes may:
A) allow a company to raise the price of the product.
B) move a company closer to a competitive priority of price.
C) reduce prevention costs.
D) ensure that the trade-off between prevention costs and other costs of poor quality is worthwhile.

Question

Quizplus · Accepted Answer

If a company improves the quality of its products and processes, it can justify charging a higher price for its products. This is because consumers are willing to pay more for higher quality products.

Answer: C 
 Prevention costs are the costs associated with preventing defects or errors from occurring in the first place. By improving products and processes, a company can reduce its prevention costs.

Answer: D 
 When a company invests in improving the quality of its products and processes, it needs to ensure that the costs of doing so are worthwhile. This means that the benefits of reducing defects and errors need to outweigh the costs of prevention. When quality is increased, the trade-off between prevention costs and other costs of poor quality becomes more favorable.

Therefore, the best choices are A, C, and D.

Increasing the Quality Level by Better Products and Processes May