The real costs of quality:
A)tend to rise significantly with the cost of prevention.
B)rise significantly as defects increase in the finished product.
C)are incurred in the quality control department.
D)are easily identified by the accounting department.
E)are frequently overstated in an organization.

Question

Quizplus · Accepted Answer

The costs of quality increase significantly as defects increase in the finished product because more resources must be allocated towards reworking, repairing, or scrapping defective items. The cost of prevention, while important in reducing defects, may not necessarily result in a corresponding increase in costs. The costs of quality are not solely incurred in the quality control department and may include costs associated with lost revenue, decreased customer satisfaction, and damage to the organization's reputation. While the accounting department may track and report on the costs of quality, they are not easily identified and may require careful analysis to accurately determine. The statement that the costs of quality are frequently overstated is not accurate as quality issues can have significant and long-lasting impacts on an organization's performance.

The Real Costs of Quality