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Three years ago the large number of faulty products being returned by its customers resulted...

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Three years ago the large number of faulty products being returned by its customers resulted in a company adopting total quality management (TQM). The company has increased expenditure on staff training and product inspections. This has resulted in a reduction in the number of faulty products returned.

Which of the following statements is correct?

A.

Spending more on conformance costs has resulted in a reduction in internal failure costs.

B.

Spending more on conformance costs has resulted in a reduction in external failure costs.

C.

Spending more on non-conformance costs has resulted in a reduction in conformance costs.

D.

Spending more on prevention costs has resulted in a reduction in appraisal costs.

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