stocking costs
stock-out costs
costs of quality
shrinkage costs
✅ The correct answer is C.
Cost of product failure, error prevention and appraisals can be classified under costs of quality. Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services, and that result from internal and external failures.
Cost of product failure, error prevention and appraisals can be classified under costs of quality. Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services, and that result from internal and external failures.