ICGB · Question #22
Cost of Poor Quality (COPQ) can be classified as Tangible (Visible) Costs and Hidden Costs.
The correct answer is A. True. Option A is correct because COPQ is indeed categorized into two broad types: Tangible (Visible) Costs - such as scrap, rework, warranty claims, and inspection costs - and Hidden Costs, which are harder to quantify, like lost customer goodwill, employee morale damage, and missed…
Question
Cost of Poor Quality (COPQ) can be classified as Tangible (Visible) Costs and Hidden Costs.
Options
- ATrue
- BFalse
How the community answered
(65 responses)- A80% (52)
- B20% (13)
Explanation
Option A is correct because COPQ is indeed categorized into two broad types: Tangible (Visible) Costs - such as scrap, rework, warranty claims, and inspection costs - and Hidden Costs, which are harder to quantify, like lost customer goodwill, employee morale damage, and missed sales opportunities. This dual classification is foundational to quality management frameworks like the "Cost of Quality Iceberg" model, where hidden costs lurk below the surface and often dwarf visible ones. Option B is incorrect because it flatly contradicts this well-established classification; denying the tangible/hidden distinction would mean ignoring a core tenet of quality economics.
Memory tip: Think of an iceberg - the tip above water represents Tangible Costs you can see and measure, while the massive submerged portion represents Hidden Costs that are real but harder to spot. COPQ = the whole iceberg, not just the tip.
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