In order to reduce its overall quality costs, a company should focus most of its efforts on:
A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external 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 occurred. Internal failure costs are incurred when defects are detected during the production process, and external failure costs are incurred when defects are detected after the product has been sold to customers. By focusing on prevention costs, a company can reduce the likelihood of defects occurring and therefore reduce both internal and external failure costs, ultimately leading to lower overall quality costs.

In Order to Reduce Its Overall Quality Costs, a Company