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CMA Final · Strategic Cost Management · Quality Cost Management

In a cost of quality framework, the 'conformance' costs consist of:

Conformance costs are prevention and appraisal costs, spent to make sure products meet specifications. Internal and external failure costs are costs of non-conformance, incurred because products fail to meet standards.

  1. APrevention and appraisal costsCorrect
  2. BInternal and external failure costs
  3. CPrevention and internal failure costs
  4. DAppraisal and external failure costs

Explanation

Costs of conformance are those spent to ensure products meet standards: prevention and appraisal. Costs of non-conformance are internal and external failure costs. The other pairings mix the two categories.

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