Costs Incurred When Products and Services Fail to Conform to Requirements

question 23

Multiple Choice

Costs incurred when products and services fail to conform to requirements or satisfy customer needs after being delivered to customers are

• A) prevention costs.
• B) appraisal costs.
• C) internal failure costs.
• D) external failure costs.
• E) a different category of quality-related costs.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Cognitive Biases

Cognitive biases are systematic patterns of deviation from norm or rationality in judgment, often leading to illogical interpretation or decision-making.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Systematic Error

A consistent, predictable error present in the method of measurement that affects the accuracy of results.