In a Cost-of-Quality (COQ) reporting framework, costs incurred to keep quality defects from occurring are classified as:
A) Customer-failure costs.
B) Appraisal costs.
C) Internal failure costs.
D) Prevention costs.
E) Detection costs.

Question

Quizplus · Accepted Answer

Prevention costs are costs incurred to prevent quality defects from occurring. This includes costs associated with quality planning, training, process control, design reviews, customer surveys, and supplier evaluations. The goal of prevention costs is to eliminate potential defects before they occur and therefore reduce the need for appraisal and internal failure costs.

Note: Customer-failure costs are costs incurred due to quality defects that are experienced by the customer, while appraisal costs are costs incurred to evaluate the quality of products or services before they are delivered to the customer. Internal failure costs are costs incurred due to quality defects that are detected before the product is delivered to the customer. Detection costs are costs incurred to detect quality defects after they have occurred.

In a Cost-Of-Quality (COQ) Reporting Framework, Costs Incurred to Keep