The types of costs included in a cost of quality analysis include:
A)Production,delivery,and marketing.
B)Internal and external.
C)Direct and indirect.
D)Prevention,appraisal,and failure.

Question

Quizplus · Accepted Answer

Cost of quality analysis typically includes three types of costs: prevention costs, appraisal costs, and failure costs. Prevention costs are incurred to prevent defects from occurring, such as training employees, improving processes, and designing products with high quality standards. Appraisal costs are incurred to detect defects, such as inspections and quality control activities. Failure costs are incurred after defects have occurred, such as warranty repairs, returns, and lost sales. Therefore, the best choice is D, which includes the three types of costs commonly analyzed in a cost of quality analysis. Choices A, B, and C do not capture the specific types of costs that are relevant to a cost of quality analysis.

The Types of Costs Included in a Cost of Quality