Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):
A) Prevention cost.
B) Appraisal cost.
C) Internal failure cost.
D) External failure cost.
E) Opportunity cost.

Question

Quizplus · Accepted Answer

Appraisal costs are incurred to detect and prevent defects or non-conforming products. Examples of appraisal costs include inspection, testing, and quality control. In this scenario, the cost incurred to detect products that do not conform to specifications is an appraisal cost, as it is aimed at ensuring that only products meeting the required specifications are approved for sale or use.

Product-Quality-Related Costs Are Part of a Total Quality Control Program