Higher product quality:
A) can sometimes lead to lower product costs.
B) requires a strong incentive scheme.
C) requires a weak incentive scheme.
D) is most easily achieved through a publicly provided system.

Question

Quizplus · Accepted Answer

Higher product quality can lead to lower product costs in the long run by reducing costs associated with defects, rework, warranty claims, and customer complaints. This is known as the quality-cost tradeoff. Therefore, improving quality can be a cost-effective strategy for companies, especially if they adopt a proactive quality management approach that prevents defects from occurring in the first place. However, this does not necessarily require a strong or weak incentive scheme, nor does it require a publicly provided system.

Higher Product Quality