Which quality cost segment is associated with evaluating product quality through inspection and testing?

Which quality cost segment is associated with evaluating product quality through inspection and testing?

• A. Prevention
• B. Appraisal
• C. Internal Failure Costs
• D. External Failure Costs

Answer: (B)

Appraisal costs cover activities that measure and evaluate product quality to determine conformance. Inspecting parts, testing finished goods, quality audits, and calibration of test equipment are classic appraisal activities. These costs are incurred to uncover defects before the product reaches the customer. Prevention costs are spent to stop defects from occurring in the first place (training, process design, supplier quality, quality planning). Internal failure costs arise when defects are found during production (rework, scrap, retesting) before shipment. External failure costs occur when defects are discovered after delivery (returns, warranty, field service). Since inspection and testing are evaluative steps used to determine if products meet requirements, they belong to appraisal.

Appraisal costs cover activities that measure and evaluate product quality to determine conformance. Inspecting parts, testing finished goods, quality audits, and calibration of test equipment are classic appraisal activities. These costs are incurred to uncover defects before the product reaches the customer.

Prevention costs are spent to stop defects from occurring in the first place (training, process design, supplier quality, quality planning). Internal failure costs arise when defects are found during production (rework, scrap, retesting) before shipment. External failure costs occur when defects are discovered after delivery (returns, warranty, field service). Since inspection and testing are evaluative steps used to determine if products meet requirements, they belong to appraisal.