Types of Costs when Quality Considerations are made

Topic

Types of Costs when Quality Considerations are made

Instructions

You are employed by a firm that produces tangible products. These products are then sold to a consuming populace that is unaffected by place, income, sex, race, age, or any environmental concerns. These products are acquired and used across the spectrum of consumers. Write a memorandum paper showing costs and quality.

Answer preview

The prevention costs are a type of cost which an organization incurs in an effort to prevent a quality issue or problem from occurring (Uyar, 2008). Ideally, when a quality problem occurs, it means that the quality of the products may be affected. This can lead to bigger costs and losses, in the form of lost sales, or defective products that cannot be marketed. An example of a prevention cost is the costs incurred by a fir to train its employees.

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