Improving quality seems to be a strategic weapon in gaining market share.However,improving quality entails allocation of resources and effort.Which one of the following costs increases to improve quality?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs

Question

Quizplus · Accepted Answer

Prevention costs are the costs incurred to prevent defects from occurring in the first place. These costs include training, quality planning, design reviews, process control, supplier evaluations, and other activities that help ensure quality control. As a company invests more in prevention activities, it is likely to see a reduction in the number of defects and related costs such as internal and external failure costs. Therefore, improving quality through prevention activities will increase prevention costs.

Improving Quality Seems to Be a Strategic Weapon in Gaining