Q339
Cost of product failure, error prevention and appraisals can be classified under
A.
stocking costs
B.
stock-out costs
C.
costs of quality
AnswerD.
shrinkage costs
Answer: Option C
Solution
Answer: Option C
Solution:
Cost of product failure, error prevention and appraisals can be classified under costs of quality. Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization's products or services, and that result from internal and external failures.