ACCT 3130 Chapter 19

The total features & characteristics of a product or service made or performed according to specifications to satisfy customers at the time of purchase & during use.

• Quality

• Design Quality

• Conformance Quality

Companies find that focusing on the quality of a product or service generally:

• builds expertise in producing it

• lowers cost of providing it

• creates higher customer satisfaction

• generates higher future revenues

Refers to how closely the characteristics of a product or service meet the needs & wants of customers.

• Design Quality

• Conformance Quality

Refers to the performance of a product or service relative to its design & product specifications.

• Design Quality

• Conformance Quality

Which is A?

• Conformance Quality Failure

• Design Quality Failure

Answer explanation

Did the product do what it was designed to do?

Which is B?

• Conformance Quality Failure

• Design Quality Failure

Answer explanation

Customer responses

What are the four categories of Costs of Quality (COQ)?

• Prevention Costs

• Appraisal Costs

• Internal Failure Costs

• External Failure Costs

• Manufacturing Overhead Costs

Costs incurred to preclude the production of products that do not conform to specifications.

• Prevention Costs

• Appraisal Costs

• Internal Failure Costs

• External Failure Costs

• Manufacturing Overhead Costs

Costs incurred to detect which of the individual units of products do not conform to specifications

• Prevention Costs

• Appraisal Costs

• Internal Failure Costs

• External Failure Costs

• Manufacturing Overhead Costs

Costs incurred on defective products BEFORE they are shipped to customers.

• Prevention Costs

• Appraisal Costs

• Internal Failure Costs

• External Failure Costs

• Manufacturing Overhead Costs