Business > CASE STUDY > QHT_Task_1.docx Western Governors University QHT Task 1 There are three types of cost (All)

QHT_Task_1.docx Western Governors University QHT Task 1 There are three types of cost

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QHT_Task_1.docx Western Governors University QHT Task 1 There are three types of costs associated with when a company is making decisions based on quality consideration. The types are internal/ex... ternal failure costs, appraisal costs, and prevention costs. Internal and external failure costs are the costs which are discovered in relation to defective goods before they are transmitted to internal or external customers. Appraisal costs are the costs produced from ensuring quality assurance standards are created and maintained. Prevention costs are the costs expended on keeping appraisal costs, internal costs, and external costs at the lowest possible level. Internal failure costs are exemplified by production machinery not producing at optimal levels or optimal products. External failure costs are associated with the transportation process for returns due to dissatisfaction or defectiveness. Appraisal costs are encompassed by quality control programs, inspection policies, and the people employed to oversee these audits. Prevention costs are focused on employee training programs, operational manuals, and efforts to improve manufacturing processes and increase product quality. These costs have trade offs when it comes to producing a good or service by comparing whether to manufacture internally or externally. Internal failure costs would be reduced if the company were to reduce machinery which manufactures goods due to the fact they would be purchasing more finished goods. External failu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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