Costs incurred to correct nonconforming work before the


1. Costs incurred to correct nonconforming work before the product is delivered to the customer are referred to as:

a. Detection costs

b. Prevention costs

c. Internal failure costs

d. External failure costs

e. None of the above.

2. If a process is deemed to be functioning properly when it is in fact out of control, which of the following is true?

a. A Type I error has occurred which is the producer's risk.

b. A Type II error has occurred which is the producer's risk.

c. A Type I error has occurred which is the consumer's risk.

d. A Type II error has occurred which is the consumer's risk.

e. None of the above.

3. A control chart is used to plot average values of a performance measure over time to determine if the performance mean and variance of the process change.

True

False

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Operation Management: Costs incurred to correct nonconforming work before the
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