For most companies embarking on a quality cost program,management typically finds that actual costs,in order of highest to lowest,are:
A)external failure, internal failure, appraisal, and prevention.
B)internal failure, external failure, prevention, and appraisal.
C)internal failure, prevention, external failure, and appraisal.
D)External failure, prevention, internal failure, and appraisal.

Question

Quizplus · Accepted Answer

This is because external failures (such as warranty claims or customer returns) are typically the most expensive costs to a company, followed by internal failures (such as rework or scrap), appraisal costs (such as inspection and testing), and finally prevention costs (such as process improvement and employee training). Therefore, the order of highest to lowest costs would be external failure, internal failure, appraisal, and prevention.

For Most Companies Embarking on a Quality Cost Program,management Typically