If a manufacturer has established a limit on the number of defects that are tolerable in the final assembly of its product, which of the following quality control procedures should be employed?
I). Inspect completed goods for compliance with established tolerances.
II). Review sales returns for defects not detected during the final inspection process.
III). Compare materials and machinery specifications with original product designs.
IV). Establish a quality circle that includes management and subordinates to discuss labor efficiency.
- I, III, and I.
- II and III only.
- I, II, and III.
- III and IV only.
Answer(s): C
Explanation:
Quality control procedures may be categorized according to the nature of the costs incurred. An organization incurs appraisal costs to ensure product quality. These costs include the costs of inspection, testing, and statistical quality control programs. An organization also should investigate the causes of sales returns, which represent an external failure cost. Furthermore, the organization should incur certain prevention costs, e.g., by reviewing equipment design and materials requirements.