Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is NOT a category associated with the cost of poor quality?

1. External failure costs

2. Maintenance costs

3. Appraisal costs

4. Prevention costs

The correct answer is: Maintenance costs

The identification of maintenance costs as not a category associated with the cost of poor quality helps clarify the broader framework of quality costs. In the context of quality management, costs are typically divided into four main categories: prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention costs are expenses incurred to prevent defects from occurring in the first place. This includes costs related to quality planning, training, and process control. Appraisal costs are associated with measuring, evaluating, or auditing products or services to ensure conformance to quality standards and typically involve inspection and testing. Internal failure costs occur when defects are identified before products or services reach customers; these costs relate to rework, scrap, and other forms of noncompliance that are corrected in-house. External failure costs arise when defects are discovered after delivery to the customer, leading to warranty claims, returns, and loss of reputation, which can have significant financial repercussions. Maintenance costs, on the other hand, refer to expenses incurred to keep machinery and equipment operating effectively and do not specifically relate to the concept of poor quality. While they can indirectly influence the overall quality of products or services, they are not classified under the standard categories of costs of poor quality. Therefore, classifying maintenance costs as