Project Management Professional (PMP) Exam Practice – Question1453

As it applies to quality, the law of diminishing returns says that______________


A.
100% quality is unattainable
B. 100% inspection is not cost effective
C. Beyond a certain point, additional investment in quality has a negative ROI
D. Providing quality products will stop, or at least diminish, the number of returned items

Correct Answer: C

Explanation:

Explanation:
If a company has paid $100,000 to gain 98% quality and it would cost an additional $25,000 to gain the other 2%, this is known as the law of diminishing returns.