Required:
Identify four categories of quality costs. In addition, identify three items that would be classified in each of the
categories.
Answer: Prevention:
Hiring employees with good references.
Training of owners and employees.
Good security.
Good reservation system.
Purchasing quality furniture.
Appraisal:
Verifying accuracy of reservation and registration procedures.
Inspecting rooms, facilities, building and grounds regularly.
Observing activities of employees.
Testing furniture and fixtures.
Taste testing food.
Internal failure:
Recleaning rooms and facilities.
Restocking rooms with linens, glasses, etc.
Out of stock supplies.
Reinspection.
Failure to bill on a timely basis.
External failure:
Responding to complaints about rooms and food.
Responding to complaints about reservations.
Emergency cleaning of rooms when not ready on time.
Customer refunds because of unsatisfactory conditions.
Opportunity cost of lost revenue resulting from unhappy customers.
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