Answer (D) is correct . The following are the four categories of quality costs:? prevention, appraisal, internal failure, and external failure (lost opportunity). Appraisal costs include quality control programs, inspection, and testing. However, some authorities regard statistical quality and process control as preventive activities because they not only detect faulty work but also allow for adjustment of processes to avoid future defects.
Answer (A) is incorrect because Internal failure costs arise after poor quality has been found; statistical quality control is designed to detect quality problems.
Answer (B) is incorrect because Statistical quality control is not a training cost.
Answer (C) is incorrect because External failure costs are incurred after the product has been shipped, including the costs associated with warranties, product liability, and customer ill will.
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