Listed Below Are Selected Line Items from the Cost of Quality

question 117

Multiple Choice

Listed below are selected line items from the Cost of Quality (COQ) report for Watson Products for last month: $$\begin{array} { l r } \text { Category } & \text { Amount } \\\hline \text { Rework } & \$ 725 \\\text { Equipment maintenance } & 1,154 \\\text { Product testing } & 786 \\\text { Product repair } & 695\end{array}$$ What was Watson's total prevention and appraisal cost for last month?

• A) $786.
• B) $1,154.
• C) $1,849.
• D) $1,940.
• E) $2,665.

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Definitions:

Decisions

The process of making choices or conclusions based on available information or reasoning.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards.

Preference

An individual's choice or predilection towards certain ideas, objects, or outcomes over others.

Error Management Theory

A theory suggesting that humans and other animals have evolved biases in judgement and decision-making processes to avoid more costly errors.