Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort. As greater effort is expended to stop defects before they occur, which one of the following costs increases?
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. As more effort is expended on preventing defects, the prevention costs increase. Appraisal costs are the costs incurred to detect defects, internal failure costs are incurred when defects are found within the organization, and external failure costs are incurred when defects are found by customers or in the market. Therefore, the correct answer is A) prevention costs.

Improving Quality Seems to Be a Strategic Weapon in Gaining