Which of the following is TRUE of the four major categories of quality costs?
A)An increase in internal failure costs will decrease external failure costs.
B)An increase in prevention costs will decrease appraisal costs.
C)Savings in external failure costs will generate a larger savings than improvement in any other category.
D)An increase in appraisal costs will decrease internal failure costs.

Question

Quizplus · Accepted Answer

Prevention costs are incurred to prevent defects from occurring in the first place, while appraisal costs are incurred to detect defects after they have already occurred. Therefore, increasing prevention costs will reduce the likelihood of defects occurring, which will in turn decrease the need for appraisal costs. However, the relationship between the other categories of quality costs is not as straightforward, so options A, C, and D are incorrect.

Which of the Following Is TRUE of the Four Major