MCT Cost categories

1. In the external nonconformity (ENC) costs, we find the following costs:

• Financial expenses
• External audits
• Disputes with customers
• Exceptional transports
• Discounts granted
• Imposed subcontracting fees

2. Prevention costs (P) include the following costs:

• Quality function
• Annual staff interview
• Supplier evaluation
• Customer satisfaction survey
• Staff training
• Internal system audits

3. In the detection costs (D), we find the following costs:

• Inspection and test function
• Evaluation of staff on hiring
• Monitoring and measurement
• Internal system audits
• Internal process and product audits
• External audits

4. Compliance costs are also called:

• Unavoidable costs
• Investments
• Avoidable costs
• Hidden costs
• Unavoidable losses

5. Prevention and detection costs are part of:

• Compliance costs
• The COQ
• Non-compliance costs