What does product quality cost comprise of?

Product quality cost encompasses a comprehensive framework of costs associated with ensuring and maintaining the quality of a product throughout its lifecycle. The correct response highlights that these costs include both prevention and appraisal costs.

Prevention costs are the expenses incurred to prevent defects from occurring in the first place. This can involve investing in high-quality materials, training workers in quality standards, and implementing robust quality management systems. By focusing on prevention, a company can reduce the likelihood of failures or defects, ultimately leading to improved customer satisfaction and reduced costs associated with rework or returns.

Appraisal costs, on the other hand, relate to the expenses associated with measuring and monitoring the quality of products. This can include costs for inspections, testing, and evaluating the processes that ensure products meet quality standards before they reach the customer. By investing in appraisal activities, a company can detect issues early and take corrective actions before products are sold, minimizing the potential for failure costs.

The incorrect options reflect a narrower view of quality costs. For instance, focusing solely on costs related to product failure does not capture the proactive measures necessary to maintain quality. Similarly, addressing defects only after a product is sold overlooks the significance of preventing issues before they escalate. Finally, linking advertising expenses solely to maintaining product quality does not accurately