Complaint Adjustment Costs Definition and Explanation PDF | Download eBooks
Learn Complaint Adjustment Costs definition in total quality management with explanation to study “What are Complaint Adjustment Costs”. Study complaint adjustment costs explanation with TQM terms to review total quality management course for online MBA programs.
Complaint Adjustment Costs Definition:
All costs of investigation and adjustment of justified complaints attributable to the nonconforming product are called complaint adjustment costs.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Complaint Adjustment Costs Explanation:
There are some costs associated with the quality of the products. These costs are called quality costs. Quality costs are divided into three classes. One of them is external failure cost that is associated with the poor quality of products after they are shipped to the customer. One of the external failure cost is related to the customer complaints about the quality issues in the products. When an organization receives complaint from customers about malfunctioning of a product or item, the organization must adjust that complaint. This complaint can be adjusted either through financial compensation or shipping a similar good quality product to the customer. The costs associated with all these activities that are performed to adjust customer complaints are called complaint adjustment costs.
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