$\text { Cost of quality report }$ 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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