The four categories of cost associated with a Cost-of-Quality (COQ) reporting system are:
A) External failure, internal failure, prevention, and carrying.
B) External failure, internal failure, prevention, and appraisal.
C) External failure, internal failure, training, and appraisal.
D) Warranty, product liability, training, and appraisal.
E) Warranty, product liability, prevention, and appraisal.

Question

Quizplus · Accepted Answer

The four categories of cost associated with COQ reporting system are external failure (costs associated with product failure after it has been delivered to the customer), internal failure (costs associated with identifying and correcting defects before delivery to the customer), prevention (costs associated with preventing defects from occurring in the first place), and appraisal (costs associated with evaluating products and services to ensure they meet quality standards). Option B includes all four categories. Options A, C, D, and E either include incorrect categories or are incomplete.

The Four Categories of Cost Associated with a Cost-Of-Quality (COQ)