$\text { Cost of quality report }$ In Evaluating Zagart's Zambonis Cost of Quality Report, Which Is

Multiple Choice

$\text { Cost of quality report }$
$\begin{array}{|l|r|}\hline Prevention&\$ thou\\\hline \begin{array}{l}\text { Engineering tests at } \\\text { supplier's factory }\end{array} & \$ 18 \\\hline \text { Process re-engineering } & 50 \\\hline \text { Product redesign } & 42 \\\hline \begin{array}{l}\text { Training employees on } \\\text { new system }\end{array} & \underline{6} \\\hline & \underline{\$ 116} \\\hline\end{array}$

In evaluating Zagart's Zambonis cost of quality report, which is false?

A) ZZ is likely not spending enough on training relative to other costs of quality
B) The external failure costs are likely understated
C) ZZ is not spending enough on appraisal relative to internal and external failure costs
D) ZZ is likely to have achieved its optimum quality level
E) None of the above