Which of the following statements about quality costs is true?
A) A low level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.
B) A low level of external failure costs usually indicates that more attention needs to be paid to appraisal and internal failure costs.
C) A high level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.
D) A high level of appraisal costs usually indicates that more attention needs to be paid to external failure costs.

Question

Quizplus · Accepted Answer

Internal failure costs refer to the costs incurred within the organization due to defects or errors in the production process, while prevention costs and appraisal costs are incurred to prevent or detect defects, respectively. Therefore, a high level of internal failure costs indicates that there may be issues with the prevention and appraisal processes, and more attention should be paid to those areas. Choice A is incorrect because it suggests that a low level of internal failure costs is desirable, which is not necessarily true. Choice B is incorrect because it suggests that a low level of external failure costs means that more attention should be paid to appraisal and internal failure costs, which may not be the case. Choice D is incorrect because it suggests that a high level of appraisal costs indicates a problem with external failure costs, which is not necessarily true either.

Which of the Following Statements About Quality Costs Is True