Which type of quality cost would a firm most want to eliminate or reduce as much as possible?
A)Prevention costs
B)Appraisal or inspection costs
C)Internal failure costs
D)External failure costs

Question

Quizplus · Accepted Answer

External failure costs are the costs associated with defects found by customers after delivery or use of the product or service. These costs can lead to loss of business, damage to the company's reputation, and even legal action. Therefore, firms would want to eliminate or reduce external failure costs as much as possible to maintain customer satisfaction and protect their bottom line.

Which Type of Quality Cost Would a Firm Most Want