Which of the following is a consequence of organizational activities that contribute to product quality?
A) lower market share
B) lower warranty costs
C) greater rework and scrap costs
D) greater service costs of products after they are sold
E) higher manufacturing costs

Question

Quizplus · Accepted Answer

Organizational activities that contribute to product quality result in lower warranty costs because fewer defects and malfunctions mean fewer warranty claims and repairs that the company needs to make.

Answer: C 
 Greater rework and scrap costs are a consequence of poor product quality, not activities that contribute to quality. High-quality products require less rework and generate less scrap, resulting in lower costs.

Answer: D 
 Organizational activities that contribute to product quality can reduce the service costs of products after they are sold because well-made products are less likely to break or fail, resulting in fewer service calls and repairs.

Answer: E 
 Higher manufacturing costs are a consequence of implementing processes and technologies that improve product quality, such as using higher-grade materials and precision equipment. However, if done correctly, these increased costs should be offset by the benefits of improved quality, such as higher customer satisfaction and less rework.

Therefore, the best answer is B.

Which of the Following Is a Consequence of Organizational Activities