Costs incurred to determine whether products and services are conforming to their requirements or customer needs are
A) prevention costs.
B) appraisal costs.
C) internal failure costs.
D) external failure costs.
E) a different category of quality related costs.

Question

Quizplus · Accepted Answer

Appraisal costs are incurred to determine whether products and services are conforming to their requirements or customer needs. Examples include inspection, testing, and quality audits. Prevention costs are incurred to prevent defects from occurring in the first place, internal failure costs are incurred when defects are detected before the product is delivered to the customer, and external failure costs are incurred when defects are detected after the product is delivered to the customer. Therefore, the best choice is B.

Costs Incurred to Determine Whether Products and Services Are Conforming