The information in a quality cost report can be used to help managers determine if their quality costs are poorly distributed.

Question

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A quality cost report provides a breakdown of quality costs, such as prevention, appraisal, internal failure, and external failure costs. By reviewing the report, managers can identify areas where quality costs are high and determine if they are being spent efficiently. If quality costs are not distributed well, managers can make adjustments to improve quality, reduce costs, and ultimately provide value to customers.

The Information in a Quality Cost Report Can Be Used