Question

What is the term that describes what a business has to pay to correct defective products?

A. Cost of Quality
B. Customer Satisfaction
C. Defective Product Rate
D. Productivity Ratio

Answer 1

Answer: A. Cost of Quality

Explanation: Cost of quality (COQ) is the cost incur by an organization for creating product and services with less quality. It is the methodology that helps an organization to detect or evaluate the level of quality product and services it's organization is producing.

Cost of quality is represented by cost of good quality and cost of poor quality.

CoQ = CoGQ + CoPQ.

Answer 2

I believe the correct answer from the choices listed above is option A. The term that describes what a business has to pay to correct defective products would be the cost of quality. Hope this answers the question. Have a nice day.