The correct answer is 'Resource allocation costs.' The Cost of Quality (COQ) is composed of three main categories: Prevention Costs, Appraisal Costs, and Failure Costs (both internal and external). Resource allocation costs are not specifically part of the COQ framework.
Prevention Costs are incurred to prevent defects from occurring, such as training or process improvements. Appraisal Costs are associated with evaluating products or services for conformance to quality standards, like testing or inspections. Failure Costs are divided into Internal Failure Costs (costs incurred before delivery to the customer, like rework) and External Failure Costs (costs incurred after delivery, such as warranty claims).
While resource allocation is an important aspect of project management, it is not specifically categorized under COQ. Understanding the components of COQ helps project managers make informed decisions about quality investments and improvements throughout the project lifecycle.
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What are Prevention Costs in the context of Cost of Quality?
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What do Appraisal Costs cover and why are they important?
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