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The cost of failure to control quality includes which of the following?

A) warranty charges
B) returned materials
C) scrap, rework and spoilage
D) all of the above
E) none of the above

1 Answer

2 votes

Final answer:

The cost of failure to control quality includes warranty charges, returned materials, scrap, rework, and spoilage.

Step-by-step explanation:

The cost of failure to control quality includes all of the following:

  • Warranty charges: When a product fails to meet quality standards, customers may need to use their warranties to get it repaired or replaced, which costs the company money.
  • Returned materials: If a product is defective, customers may return it to the company, resulting in additional costs for handling and processing the returned materials.
  • Scrap, rework, and spoilage: Poor quality products may need to be scrapped, reworked, or have additional resources invested to correct the defects, leading to wasted materials, time, and labor costs.

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