Which item is a category of quality costs?

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

Answer: (B)

Quality costs are grouped into four categories that cover preventing defects and dealing with defects when they occur. Appraisal costs are the expenses tied to measuring and evaluating quality—things like incoming material inspection, in-process testing, final product testing, and quality audits. This makes it a correct category because appraisal costs specifically reflect activities that detect quality issues and verify that products meet requirements. The other options—prevention costs, internal failure costs, and external failure costs—are also categories of quality costs, representing prevention activities and costs of defects found before and after delivery, respectively. Recognizing appraisal costs helps you understand the part of quality spending focused on identifying and assessing quality to catch problems early.