Quality costs include.a.Only the cost of scrap, rework due to defects, customer returns and warranty costs.b.Only costs classified as prevention, detection and corrective action.c.The expense of upper managementd.the total of all costs incurred to assure the production and delivery of acceptable products and services.
Question
Quality costs include.a.Only the cost of scrap, rework due to defects, customer returns and warranty costs.b.Only costs classified as prevention, detection and corrective action.c.The expense of upper managementd.the total of all costs incurred to assure the production and delivery of acceptable products and services.
Solution
Quality costs include the total of all costs incurred to assure the production and delivery of acceptable products and services. This encompasses a wide range of costs, not just the cost of scrap, rework due to defects, customer returns and warranty costs. It also includes costs classified as prevention, detection and corrective action. These are all measures taken to ensure the quality of the product or service, and they all contribute to the overall cost of quality. The expense of upper management is not typically included in quality costs, unless their role is directly related to quality assurance.
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