In 2013 a Manufacturing Company Instituted a Total Quality Management

question 109

Multiple Choice

In 2013 a manufacturing company instituted a Total Quality Management (TQM) program and one year later produced the report shown below: On the basis of the above report, which one of the following statements is most likely correct?

• A)An increase in conformance costs resulted in a higher-quality product, and therefore, resulted in a decrease in non-conformance costs.
• B)An increase in inspection costs was solely responsible for the decrease in total quality costs.
• C)Quality costs such as scrap and rework decreased by 48 percent.
• D)Quality costs such as returns and repairs under warranty decreased by 40 percent.
• E)Non-conformance costs increased by 50 percent and conformance costs decreased by approximately 47 percent.

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