Question

All of the following costs are likely to decrease as a result of better quality EXCEPT: a. customer dissatisfaction costs. b. inspection costs. c. scrap costs. d. warranty and service costs. e. maintenance costs.

Answer 1

Answer:

The correct answer is letter "E": maintenance costs.

Explanation:

As a result of improving products' quality, maintenance costs tend to rise. This scenario arises because the materials or knowledge necessary to improve the quality of the products tend to come with higher prices that companies are pushes to incur to keep customer satisfaction at its maximum level possible.