Listed Below Are 6 Items Concerned with Quality

question 39

Essay

Listed below are 6 items concerned with quality.
Required:
Classify each of these items into its appropriate Cost-of-Quality (COQ) category: Prevention Cost; Appraisal Cost; Internal Failure Cost; or External Failure Cost.
1. Establish a 24-hour hot line for customers to report quality failures.
2. Establish a quality-inspection program.
3. Re-design parts and components to simplify manufacturing of the product.
4. Hire additional field service people to provide better services.
5. Extend the warranty period for products from 90 days to one year.
6. Train employees on the importance of zero defects.

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Definitions:

Exchange Rate Fluctuations

Variations in the value of one currency relative to another, affecting international trade and investments.

Global Companies

Enterprises that operate in multiple countries around the world, often focusing on international sales, partnerships, and supply chains.

Dividend Policy

A company's approach to distributing profits to its shareholders, determining the size and frequency of dividend payments.

Market Status

The current condition or position of a product, service, or company in the competitive marketplace.