Which cost category is associated with measuring and inspecting products to determine conformance to quality requirements?

• A. Internal failure costs
• B. External failure costs
• C. Appraisal costs
• D. Prevention costs

Answer: (C)

In the cost of quality framework, appraisal costs cover activities that detect quality problems before products reach customers through measuring, inspecting, and testing. Measuring and inspecting to determine conformance directly fits this category, including things like incoming material inspection, in-process testing, final product inspection, calibration of test equipment, and quality audits. These costs exist to verify that processes and products meet requirements. They’re distinct from prevention costs (which aim to stop defects from occurring), internal failure costs (defects found during production that require rework or scrap), and external failure costs (defects found after delivery, such as warranties and returns).