The cost of conformance in a Cost-of-Quality (COQ) reporting system includes:
A) Prevention costs and appraisal costs.
B) Internal failure costs and external failure costs.
C) Prevention costs and internal failure costs.
D) Appraisal costs and internal failure costs.
E) Prevention costs and external failure costs.

Question

Quizplus · Accepted Answer

The cost of conformance in a Cost-of-Quality (COQ) reporting system includes prevention costs and appraisal costs. Prevention costs are expenses related to preventing defects before they happen, such as training and process improvement initiatives. Appraisal costs are expenses associated with evaluating products, processes, and systems to ensure quality standards are met, such as testing and inspections.

The Cost of Conformance in a Cost-Of-Quality (COQ) Reporting System