Quality costs for services include:
A) Prevention costs and appraisal costs only.
B) Prevention costs, appraisal costs and internal failure costs only.
C) Appraisal costs and internal failure costs only.
D) Prevention costs, appraisal costs, internal failure costs, and external failure costs.
E) External failure costs only.

Question

Quizplus · Accepted Answer

Quality costs for services include prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention costs are those that are incurred to prevent defects from occurring, such as employee training, process evaluation and improvements. Appraisal costs are associated with testing and evaluating the process, such as product inspections, quality audits, and supplier evaluations. Internal failure costs are those that are incurred when defects are discovered before the product or service is delivered to the customer, such as costs associated with scrap, rework, and downtime. External failure costs are those that are incurred when defects are discovered by the customer after delivery, such as costs associated with product recalls and warranty claims.

Quality Costs for Services Include