The inspection and testing of finished products falls under which cost of quality?

The inspection and testing of finished products are categorized under appraisal costs within the cost of quality framework. Appraisal costs are those incurred to determine whether products or services meet quality standards and specifications. This includes activities such as inspection, testing, and quality audits that help ensure that the final output is compliant with the quality criteria established by the organization or governing bodies.

Ensuring that products are tested and inspected before they reach customers is crucial as it helps identify defects or conformity issues, allowing for corrective actions to be taken before any products are shipped. By investing in appraisal activities, organizations can reduce the likelihood of delivering defective products, which can, in turn, minimize both internal and external failure costs. This is a proactive approach aimed at maintaining high quality throughout the production process.

In contrast, prevention costs focus on activities that are designed to prevent defects from occurring in the first place. Internal failure costs arise from defects found before products are shipped, such as rework or scrap, and external failure costs are incurred when defects are found after delivery to the customer, leading to warranty claims, returns, or loss of reputation. Thus, appraisal is distinctly associated with the costs involved in evaluating and measuring the quality of finished products through inspection and testing processes.