In 2019 a manufacturing company instituted a Total Quality Management (TQM) program and one year later produced the report shown below:
Summary of Cost of Quality (COQ) Report
(in thousands)

\begin{array}{lrrrc} & 2019 & 2020 & \% \text { Change } \\\text { Prevention costs } & \$ 200 & \$ 300 & +50 \\\text { Appraisal costs } & 210 & 315 & +50 \\\text { Internal failure costs } & 190 & 114 & -40 \\\text { External failure costs } & 1.200 & 621 & -48\\\text { Total COQ }&\$1,800&\$1,350&-25\end{array}

Based on the above report, which one of the following statements is most likely correct?
A) An increase in conformance costs resulted in a higher-quality product, and therefore, resulted in a decrease in non-conformance costs.
B) An increase in inspection costs was solely responsible for the decrease in total quality costs.
C) Quality costs such as scrap and rework decreased by 48 percent.
D) Quality costs such as returns and repairs under warranty decreased by 40 percent.
E) Non-conformance costs increased by 50 percent and conformance costs decreased by approximately 47 percent.

Regardless of the Differences in Format, a Common Feature That

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge