In the cost of quality, costs incurred in detecting individual
units of product that do not conform to specifications are

(b) The requirement is to identify how costs incurred to
detect nonconforming units are classified. Answer (b) is correct
because appraisal costs are costs associated with quality control
and include testing and inspection. Answer (a) is incorrect because
prevention costs involve any quality activity designed to do
the job right the first time. Answer (c) is incorrect because internal
failures occur when substandard products are produced but
discovered before shipment to the customer. Answer (d) is incorrect
because external failure costs are incurred for products
that do not meet requirements of the customer and have been
shipped to the customer.