Costs incurred because of poor quality found through appraisal prior to delivery of the product to the customer are, in a Cost-of-Quality (COQ) reporting framework, considered:
A) External failure costs.
B) Appraisal costs.
C) Prevention costs.
D) Internal failure costs.
E) Conformity costs.

Question

Quizplus · Accepted Answer

Costs incurred because of poor quality found through appraisal prior to delivery of the product to the customer are considered internal failure costs, as they reflect the cost of defects found before delivery. External failure costs would be costs incurred after delivery and include things like warranty claims or product recalls. Appraisal costs are the costs of inspecting and testing products to ensure they meet quality standards, while prevention costs are the costs of implementing quality control measures to prevent defects from occurring in the first place. Lastly, conformity costs are the costs of ensuring that products or services adhere to applicable regulations or standards.

Costs Incurred Because of Poor Quality Found Through Appraisal Prior