If management is reviewing a multiple-period trend graph that shows individual quality cost categories, what might they expect to see?
A)Overall quality costs decreasing as a percentage of sales with prevention costs, as a category, increasing over time.
B)Overall quality costs decreasing as a percentage of sales with all categories decreasing over time.
C)Overall quality costs increasing as a percentage of sales with external failure costs decreasing and prevention costs increasing.
D)Overall quality costs remaining the same as a percentage of sales with prevention and appraisal costs increasing over time.

Question

Quizplus · Accepted Answer

Management would expect to see an overall decrease in quality costs as a percentage of sales over time, with prevention costs increasing over time. This is because prevention costs, such as quality planning and training, can help reduce the occurrence of defects and therefore the need for corrective action and appraisals. Appraisal costs may initially increase due to improved monitoring of quality, but should eventually decrease as defects are reduced. External failure costs, such as warranty claims or product recalls, may also decrease over time as prevention efforts are successful in reducing defects.

If Management Is Reviewing a Multiple-Period Trend Graph That Shows