Choice "D" is correct. Appraisal costs would detect individual products that do not conform to specifications. Examples of appraisal costs include:
Choice "a" is incorrect. Prevention costs would prevent defective products.
Choice "c" is incorrect. Internal failure costs are the costs of fixing defective products, not detecting them.
Choice "b" is incorrect. External failure costs result when defective goods are not detected and are sold to a customer.
