Costs of quality inspections, testing, test equipment, and labs are examples of __________ costs.
A) Internal failure
B) External failure
C) Appraisal
D) Prevention
E) Replacement

Question

Quizplus · Accepted Answer

Costs of quality inspections, testing, test equipment, and labs are examples of appraisal costs. These costs are incurred to detect and prevent defects from being passed on to the customer. Internal failure costs pertain to defects that are discovered before the product is sold; external failure costs relate to defects that are discovered after the product has been sold. Prevention costs are incurred to prevent defects from occurring in the first place, and replacement costs refer to the costs of replacing defective products that have already been sold.

Costs of Quality Inspections, Testing, Test Equipment, and Labs Are