Equipment maintenance cost is a prevention cost. Prevention costs are costs that are incurred in order to prevent a defect from occurring.
Appraisal costs are the costs that are incurred in order to determine if an individual unit is defective. The cost of warranty claims is an external failure cost. External failure costs are costs to correct a defect that is not discovered until the product is in the consumer's hands.
Appraisal costs are the costs that are incurred in order to determine if an individual unit is defective. Product testing is done to find units that do not meet specifications, so the cost of product testing is an appraisal cost.
Rework cost is an internal failure cost. Internal failure occurs when a problem is detected before shipment to the customer.
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