The Quality Cost of Prevention

question 38

Multiple Choice

The quality cost of prevention:

• A) Includes the cost of detecting poor-quality outputs.
• B) Refers only to zero-defect programs.
• C) Is considered an "upstream" (i.e., prior-to-production) cost.
• D) Is a component of the cost of non-conformance.
• E) Includes the cost of lost business due to poor-quality outputs.

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Definitions:

Bailee

An individual or entity given temporary custody of someone else's property under a bailment agreement.

Liability

The state of being legally responsible for something, often referring to the obligation to repay debts or to compensate for loss or damage.

Professional Bailee

A person or entity specialized in the custody or management of others' property, often for a fee.

Warehouse Company

A warehouse company specializes in storing goods and merchandise in large buildings for manufacturers, importers, exporters, wholesalers, or logistic businesses.