Costs associated with avoiding, finding, making and repairing defects and errors, including the costs associated with selling defective products to customers are terms used to represent which of the following costs?

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BlackTom AI · Accepted Answer

To tackle this question, let's break down what each term refers to in the context of quality management and the costs associated with defects.
Option 1: 'Cost of Quality' is the umbrella term that encompasses all costs incurred to ensure quality as well as the costs resulting from quality failures. This includes prevention (avoiding defects), appraisal (finding defects through inspection), internal failures (defects found before reaching the customer), and external failures (defects found after delivery, such as selling defective products). This option correctly captures the full scope described in the prompt.
Option 2: 'Appraisal Costs' are the costs associated specifically with measuring, evaluating, or inspecting products to ensure quality (testing, inspection, etc.). While these costs are part of the Cost of Quality, they do not cover the broader categories of prevention, internal, and external failures mentioned in the question.
Option 3: 'Internal Failure Costs' refer to costs arising from defects found before the product leaves the organization, such as scrap, rework, and re-inspection. These are only one component of the overall quality cost and do not account for prevention, external failures, or the general concept of quality costs.
Option 4: 'Internal and External Failure Costs' describe the two types of failure costs: internal (defects found before delivery) and external (defects found after delivery). While these together cover a substantial portion of costs due to defects, they still exclude the broader categories of prevention and appraisal, and thus do not fully represent the complete concept described in the prompt.
In summary, the prompt is asking for the overarching term that includes avoidance, detection, and failure costs (both internal and external) related to quality, which is precisely captured by 'Cost of Quality'. The other options describe individual components or subtypes, but not the complete framework.

Costs associated with avoiding, finding, making and repairing defects and errors, including the costs associated with selling defective products to customers are terms used to represent which of the following costs?

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