Nurse Executive Certification Practice Exam

Nonconformance costs are associated with which of the following?

1. Advertising and promotions

2. Errors and failures

3. Employee salaries

4. Facility maintenance

The correct answer is: Errors and failures

Nonconformance costs are specifically tied to the costs resulting from errors or failures in a process or system that fail to meet established standards or requirements. These costs can arise in various forms, such as the costs for rework, scrap, or warranty claims, which are direct consequences of not meeting quality expectations. Therefore, when an organization fails to deliver a product or service that meets quality criteria, it faces additional expenses to rectify those failures or compensate for them. In contrast, the other options represent costs that do not directly relate to defects or failures in a product or service. Advertising and promotions are focused on attracting new customers and promoting products, and while they are essential for business success, they do not relate to quality failures. Employee salaries are fixed costs associated with compensating staff, and facility maintenance pertains to the upkeep of physical assets, both of which do not inherently involve costs attributed to the absence of quality. Thus, nonconformance costs are distinctly associated with errors and failures, reaffirming the choice that directly correlates with quality management and performance.