Deciding how much to invest in the prevention of defects can be analyzed using ________.
A)EVPI
B)Net Present Value
C)Weighted Factor Analysis
D)Return on Quality
E)Breakeven Analysis

Question

Quizplus · Accepted Answer

Return on Quality (ROQ) is a useful tool for deciding how much to invest in prevention activities. ROQ is the ratio of the reduction in the cost of poor quality to the cost of the prevention activities. The goal is to find the optimal spending on prevention activities that maximize the return on investment. Therefore, D is the best answer.

Deciding How Much to Invest in the Prevention of Defects