B. Explain each of these types of costs using examples.

memo Company name

To: Whom it may concern

Re: QHT1 Task 1

• Identify the three types of costs when quality considerations are made.

Appraisal, Prevention and failure are the three costs when quality considerations are made.

• Explain each of these types of costs using examples.

(Stevenson, 2018) Appraisal costs are from inspection, testing and other processes with the intention to reveal flawed items or service, and to ensure there are no faults. The costs occurred are from running the tests, inspectors, test equipment, labs, quality audits and field testing.(Stevenson, 2018) An example of appraisal costs is the inspector’s wages, they must be compensated for the work performed to ensure an inoperative product or service is not released to the public for purchase.(Stevenson, 2018) Prevention costs are processes implemented to prevent shoddy product issues from occurring. These costs Include, planning, administration systems, vendors, training, QC processes and attention in the design and production to decrease the possibility of flawed workmanship (Stevenson, 2018).An example of prevention cost is training employees how an item or service is to be produced to

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