To minimize its total quality costs,a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Question

Quizplus · Accepted Answer

Prevention and appraisal costs are upfront costs incurred in order to prevent defects from occurring or catching them early. By investing more in these costs, a company can minimize the costs associated with internal and external failures, which occur after the defects have been produced and can result in costly rework, customer returns, and damage to reputation. Therefore, redistributing quality costs towards prevention and appraisal can lead to overall cost savings and improved quality.

To Minimize Its Total Quality Costs,a Company Should Usually Try