In a Cost-of-Quality (COQ) reporting framework, costs incurred in conjunction with the measurement and analysis of data to ascertain conformity of products and services to specification are properly classified as:
A) External failure costs.
B) Appraisal costs.
C) Internal failure costs.
D) Prevention costs.
E) Value-added costs.

Question

Quizplus · Accepted Answer

The costs incurred for measuring and analyzing data to ensure conformity of products and services to specifications are classified as appraisal costs in a COQ reporting framework. Appraisal costs are those costs incurred to prevent defects from occurring or to capture defects before they reach the customer. Examples of appraisal costs are inspection, testing, and quality audits.

In a Cost-Of-Quality (COQ) Reporting Framework, Costs Incurred in Conjunction