Which of the following would be classified as an appraisal cost on a quality cost report?
A) Quality improvement projects.
B) Supplies used in testing and inspection.
C) Audits of the effectiveness of the quality system.
D) Quality data gathering, analysis, and reporting.

Question

Quizplus · Accepted Answer

Appraisal costs are incurred to detect defects before they reach customers. These costs include expenses related to testing, inspection, and auditing. Supplies used in testing and inspection would be classified as an appraisal cost. Quality improvement projects, audits of the effectiveness of the quality system, and quality data gathering, analysis, and reporting would fall under the category of prevention costs.

Which of the Following Would Be Classified as an Appraisal