Which quality-cost category includes final product inspection before shipment?

Prevention costs are expenditures aimed at preventing defects before they occur, such as training, process control, and quality improvement initiatives. These costs are incurred to eliminate potential issues rather than to evaluate the quality of products that are already produced, thus excluding final inspections.

Internal failure costs arise when defects are found before products are shipped, leading to costs associated with rework, scrap, or other failures that occur within the production process. While these costs relate to quality issues, they do not involve the inspection of final products prior to shipment.

External failure costs occur when defects are discovered after products have been delivered to customers, resulting in returns, repairs, or warranty claims. These costs are a consequence of poor quality control and do not pertain to the inspection processes that take place before shipment.