ICGB · Question #76
Cost of Poor Quality (COPQ) can be classified as either Tangible (Visible) Costs or Hidden Costs.
The correct answer is A. True. A is correct because COPQ is indeed classified into both tangible (visible) costs - such as scrap, rework, warranty claims, and inspection - and hidden costs, which include lost customer goodwill, employee morale issues, and missed opportunities. This two-tier model is central…
Question
Cost of Poor Quality (COPQ) can be classified as either Tangible (Visible) Costs or Hidden Costs.
Options
- ATrue
- BFalse
How the community answered
(34 responses)- A85% (29)
- B15% (5)
Explanation
A is correct because COPQ is indeed classified into both tangible (visible) costs - such as scrap, rework, warranty claims, and inspection - and hidden costs, which include lost customer goodwill, employee morale issues, and missed opportunities. This two-tier model is central to quality management frameworks like Six Sigma and ISO standards.
B is wrong because it denies a well-established classification system; COPQ is explicitly documented as having both visible and hidden components in quality management literature.
Memory tip: Think of COPQ as an iceberg - the tangible costs are the visible tip above water (easy to measure), while the hidden costs lurk beneath the surface (harder to quantify but often larger). If you remember "iceberg," you'll remember that both layers exist, making the statement True.
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