Which of the following statements best describes the relationship among the costs of quality? a. The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs. b. Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. c. Spending more on prevention and appraisal costs will reduce the total overall costs of quality. d. Spending more on prevention and appraisal costs will increase the total overall costs of quality.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 20E: Which of the following is likely to be used to reduce the cost of reworking products? a. Activity...
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Which of the following statements best describes the relationship among the costs of quality?

a. The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs.
b. Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs.
c. Spending more on prevention and appraisal costs will reduce the total overall costs of quality.
d. Spending more on prevention and appraisal costs will increase the total overall costs of quality.
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