In a Cost-of-Quality (COQ) reporting framework, the "cost of nonconformance" 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, internal failure costs, and external failure costs.
E) Prevention costs and external failure costs.

Question

Quizplus · Accepted Answer

The cost of nonconformance refers to the costs incurred as a result of failing to meet quality standards, and includes internal failure costs (such as rework and scrap) and external failure costs (such as customer complaints and warranty claims). It does not include prevention costs (costs incurred to prevent defects in the first place) or appraisal costs (costs incurred to evaluate and measure quality). Therefore, the best choice is B.

In a Cost-Of-Quality (COQ) Reporting Framework, the "Cost of Nonconformance