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1. Costs incurred to correct nonconforming work before the product is delivered

ID: 335458 • Letter: 1

Question

1.

Costs incurred to correct nonconforming work before the product is delivered to the customer are referred to as:

Detection costs

Prevention costs

Internal failure costs

External failure costs

None of the above.

2.

If a process is deemed to be functioning properly when it is in fact out of control, which of the following is true?

A Type I error has occurred which is the producer's risk.

A Type II error has occurred which is the producer's risk.

A Type I error has occurred which is the consumer's risk.

A Type II error has occurred which is the consumer's risk.

None of the above.

3.

A control chart is used to plot average values of a performance measure over time to determine if the performance mean and variance of the process change.

True

False

a.

Detection costs

b.

Prevention costs

c.

Internal failure costs

d.

External failure costs

e.

None of the above.

Explanation / Answer

1. The correct answer is option c.

Internal failure costs is nothing but the cost that is incurred when the product or service that needs to be delivered to the customer is not conforming with the requirements or needs of the customers which are found before it is delivered to the external customer.