Management is sceptical regarding the budget request (€25,000) for the next testing project.

Comprehensive and Detailed Explanation From Exact Extract of ISTQB Certified Tester Advanced Level – Test Manager v3.0 syllabus:

Per the syllabus, when building abusiness caseusing thecost of qualitymodel, compare theavoided external failure costswith thesum of relevant pre-release costs(prevention, detection/appraisal, and internal failure). For 50 expected defects found in testing:

Avoided external failure cost= 50 × €2,500 =€125,000

Pre-release costsper defect = €200 (prevention) + €400 (detection) + €150 (internal failure) =€750

Total pre-release costs= 50 × €750 =€37,500

Net benefit (cost-benefit)= €125,000 − €37,500 =€87,500

This computation follows the syllabus’ guidance to quantify bothcosts(prevention, detection, internal failure) andbenefits(external failures avoided) to demonstrate the economic value of testing.