Which of the following statements about quality costs is true? a. Even in theory

Question

Which of the following statements about quality costs is true?

a. Even in theory, external failure costs can never be reduced to zero.
b. The less a company spends on prevention costs, the less they will have to spend on internal failure costs in the future.
c. If a company produces and sells a defective product, external failure costs are likely to exceed all the other types of quality costs.
d. A low level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.

Explanation / Answer

b. The less a company spends on prevention costs, the less they will have to spend on internal failure costs in the future.

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