Business Studies · Total Quality Management
A chain of coffee shops has implemented a Total Quality Management (TQM) system to ensure consistency. As part of the scheme, the chain offers a free replacement drink to any customer not completely satisfied with their purchase. Which of the following best describes the cost of providing these replacement drinks?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An appraisal cost
- 2A prevention cost
- 3An internal failure cost
- 4An external failure cost✓
Correct answer
An external failure cost
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