Certified Associate in Software Testing (CAST) Practice Test

What term refers to money spent beyond the cost to build a product correctly the first time?

1. Cost of Quality

2. Failure costs

3. Appraisal costs

4. Prevention costs

The correct answer is: Cost of Quality

The term that describes money spent beyond the cost to build a product correctly the first time is known as the Cost of Quality. This term encompasses all costs associated with ensuring that products meet quality standards, as well as costs incurred when a product fails to meet those standards. Cost of Quality is divided into four main categories: prevention costs, appraisal costs, internal failure costs, and external failure costs. While prevention costs focus on activities that prevent defects from occurring and appraisal costs involve the assessment of products to ensure they meet quality standards, failure costs refer to the costs arising when products do not meet those standards. When a product is not built correctly the first time, additional resources may need to be allocated to rectify issues, which can include rework, scrap, warranty claims, and loss of customer trust. All of these expenses represent the additional costs associated with the overall quality of the product that exceed the baseline cost of development and production. Thus, understanding the Cost of Quality helps organizations identify areas for improvement in their quality management processes, ultimately leading to better allocation of resources and reduced expenses related to failures.