Which of the following costs is NOT a cost of quality?

• A. Scrap
• B. Research and development
• C. Rework
• D. Lost goodwill

Answer: (B)

Research and development is considered an investment in creating better products and processes, rather than a cost directly associated with the quality of existing products or services. In the context of cost of quality, these costs are typically divided into four categories: prevention costs, appraisal costs, internal failure costs, and external failure costs.

Scrap, rework, and lost goodwill are all related to the consequences of failing to meet quality standards. Scrap is the cost associated with materials that cannot be used due to defects, rework involves the costs incurred when defective products need to be refined or corrected, and lost goodwill pertains to the potential future loss of customer loyalty and trust due to quality issues. These demonstrate the importance of achieving high quality, as failing to do so leads to tangible costs. Thus, while research and development can help improve quality over time, it does not constitute a direct cost of quality in the same way that the other options do.