Cost of quality includes the following except:

• A. Cost of Appraisal
• B. Cost of Prevention
• C. Cost of Change management and external consultancy
• D. Cost of failures

Answer: (C)

Cost of quality encompasses various costs associated with ensuring that a product or service meets quality standards. It is typically divided into four categories: prevention costs, appraisal costs, internal failure costs, and external failure costs.

Prevention costs are the investments made to prevent defects in products or services, such as quality training or process improvement initiatives. Appraisal costs are associated with measuring and monitoring activities to ensure quality standards are met, including inspection and testing expenses. Internal failure costs are incurred when defects are identified before the product or service is delivered, while external failure costs arise when defects are discovered after delivery, leading to warranty claims or returns.

The option regarding cost of change management and external consultancy doesn't fit neatly into the traditional framework of costs associated with quality. While consulting and change management can play a role in helping an organization achieve better quality, they are not directly tied to the quality assurance process itself. Instead, they are more about organizational improvement and strategic change, which may indirectly influence quality but are not classified as part of the direct cost of quality. Thus, this choice stands apart from the specific categories that make up the cost of quality.