Answer to Question #175451 in Management for Alex

Question

State the categories of quality costs and give an example of each.

Answer 1

Prevention costs:They are costs of activities specifically designed to prevent poor quality in products or services.Example is equipment maintenance and repair costs

Appraisal costs:They are associated with measuring, evaluating, or auditing products or Services to assure conformance to quality standards abd performance requirements.Example is Audits costs

Failure costs:They resulting from products or services not conforming to requirements Or customer/user needs-that is, the costs resulting from poor quality.

Internal failure costs:They occur prior to delivery or shipment of the product, or service to customer.Example is employee turnover costs.

External failure costs:They occur after shipment of the product, or service, to customer. Example is warranty expenses