In activity-based management, which quality cost would NOT be considered value-added?
A) recruiting
B) quality circles
C) supplier certification
D) inspection of materials

Question

Quizplus · Accepted Answer

Inspection of materials is a non-value-added quality cost as it only identifies defects or errors after they have occurred and does not prevent them from happening in the first place. The other options listed (recruiting, quality circles, supplier certification) are value-added quality costs as they all involve proactive measures to prevent defects and improve overall quality.

In Activity-Based Management, Which Quality Cost Would NOT Be Considered