$\text { Cost of quality report }$ In Evaluating Zagart's Zambonis Cost of Quality Report, Which Is

question 14

Multiple Choice

$\text { Cost of quality report }$
$\begin{array}{|l|r|}\hline Prevention&\$ thou\\\hline \begin{array}{l}\text { Engineering tests at } \\\text { supplier's factory }\end{array} & \$ 18 \\\hline \text { Process re-engineering } & 50 \\\hline \text { Product redesign } & 42 \\\hline \begin{array}{l}\text { Training employees on } \\\text { new system }\end{array} & \underline{6} \\\hline & \underline{\$ 116} \\\hline\end{array}$

In evaluating Zagart's Zambonis cost of quality report, which is false?

• A)ZZ is likely not spending enough on training relative to other costs of quality
• B)The external failure costs are likely understated
• C)ZZ is not spending enough on appraisal relative to internal and external failure costs
• D)ZZ is likely to have achieved its optimum quality level
• E)None of the above

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Definitions:

Marginal Product

Marginal product is the addition to total output produced by using one more unit of a specific input, holding all other inputs constant.

Marginal Revenue

The change in total revenue generated by an additional unit of output.

Marginal Cost

The growth in aggregate costs linked to creating an extra unit of a product or service.

Pastry Chef

A professional cook specializing in the creation of desserts, pastries, breads, and other baked goods.