In trying to assess its overall costs, the NoWobble Chair Company should include estimates of the costs to scrap defective chairs or rework the chairs that don't have to be scrapped but weren't perfect. These costs are referred to as the
A) costs of quality.
B) penalties of less than perfect quality.
C) punitive costs of poor quality.
D) conformance costs.
E) penalties for neglecting quality.

Question

Quizplus · Accepted Answer

These costs are part of the costs of quality, which include all costs incurred over the product life cycle to prevent defects, or the costs resulting from defects. This includes costs for scrap, rework, and other quality-related costs.

In Trying to Assess Its Overall Costs, the NoWobble Chair