Question

1. A better way to define and calculate the cost of quality is to approach it as the cost of not doing things right the first time.

true or false

2. The cost of quality includes a number of different costs. One of these costs is: _____?

• Variable Overhead

• Appraisal Costs

• Direct Labor

• Material Costs

• Inventory Costs

3. ISO 9000 is necessary when you want to do business in the healthcare industry in the United States

true or false

4. How does the Malcolm Baldrige Award help companies improve their productivity as well as the quality of their products and/or services?

• Reporting quality levels among American firms

• Helping Baldridge award winners to increase their sales

• Stimulating foreign based suppliers of American firms to improve quality

• Providing feedback to applicants by the examiners

• Identifying American firms with the most difficult quality problems

5. ISO 14000 is primarily concerned with environmental management.

true or false

Answer 1

1. The answer is false.

Cost of quality or quality costs is nothing but the cost of preventing and removing defects from products. This is of four main types. They are: -

• Prevention costs
• Appraisal costs
• Internal failure costs
• External failure costs.