The four categories of cost associated with a COQ 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 in a COQ system are external failure (costs associated with defects discovered by customers), internal failure (costs associated with defects discovered within the organization), prevention (costs associated with preventing defects in the first place), and appraisal (costs associated with evaluating product or service quality). Option B accurately identifies these four categories. Option A is incorrect because it includes carrying costs, which are not typically included in COQ systems. Options C and D both include categories that are not part of COQ (training, warranty, and product liability). Option E includes prevention and appraisal, but not the two categories of failure costs.

The Four Categories of Cost Associated with a COQ System