In order to have a high-quality finished product:

A) appraisal costs must exceed external failure costs.
B) the product's design specifications must meet customers' expectations.
C) the product must meet the standards of its design.
D) the product's design specifications must meet customers' expectations AND the product must meet the standards of its design.

Both B and C are important factors in ensuring high-quality finished products. The product must be designed to meet customers' expectations (B) and then manufactured to meet the standards of that design (C). However, simply meeting these standards may not be enough to guarantee quality; the product must also be inspected and tested in order to identify and correct any defects or non-conformities (appraisal costs). This is necessary to prevent external failure costs, which would occur if defective products make it to the end user and cause problems or safety issues. Therefore, both B and C are necessary but not sufficient on their own, and D is the best answer.