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follows: e, the Blankie Co. is comparing its costs of quality from one year to the next. The relevant costs are as Prevention Appraisal Internal
follows: e, the Blankie Co. is comparing its costs of quality from one year to the next. The relevant costs are as Prevention Appraisal Internal failure External failure First Year Second Year $45,000 25,000 80,000 75,000 $60,000 35,000 50,000 65,000 Which of the following conclusions can Blankie draw about its quality program? OA. It has been a failure, because conformance costs decreased by $40,000 while nonconformance costs increased by $25,000. B. It has been a success, because conformance costs decreased by $40,000 and nonconformance costs increased by $25,000. OC. It has been a failure, because conformance costs increased by $25,000 while nonconformance costs decreased by $40,000. OD. It has been a success, because conformance costs increased by $25,000 while nonconformance costs decreased by $40,000
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