Which of the Following Is the Cost of Quality Classification

question 17

Multiple Choice

Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair) ?

• A) Appraisal costs
• B) Prevention costs
• C) External failure costs
• D) Customer return cost
• E) Workmanship costs

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Definitions:

Narrow Span

Refers to a managerial structure where each manager oversees a small number of subordinates, allowing for more close-knit supervision and communication but potentially increasing organizational layers.

Cost Leadership

is a business strategy aimed at achieving the lowest operational costs in the industry to offer products or services at competitive prices, often resulting in a high market share.

Organic Structure

An organizational configuration that is flexible, adaptive, and decentralized, designed to enable rapid response to changes.

Organizational Strategy

A plan of action designed to achieve long-term or overall goals and objectives of an organization.