In a Cost of Quality (COQ) Report, Costs to Acquire

question 105

Multiple Choice

In a Cost of Quality (COQ) report, costs to acquire and install training equipment would be classified as:

• A) Prevention costs.
• B) Retention costs.
• C) Appraisal costs.
• D) Internal failure costs.
• E) External failure costs.

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Definitions:

Spending Variance

The difference between the actual amount spent in a budget category and the amount that was originally budgeted, indicating over or under-spending.

Customers Served

Refers to the total number of customers who have been provided with a service or product within a specific time frame.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period or item.

Actual Level

The real, measured level of production, performance, or activity, as opposed to planned or theoretical levels.