The cost of inspection at various stages of production is an example of what type of cost?
A) Appraisal cost
B) External failure cost
C) Prevention cost
D) Internal failure cost

Question

Quizplus · Accepted Answer

The cost of inspection at various stages of production is an appraisal cost, which is a type of cost incurred to evaluate, audit, or monitor conformance of a product or service to specifications. Appraisal costs are incurred to verify that products or services meet customer requirements and quality standards.

The Cost of Inspection at Various Stages of Production Is