If a company were to increase its appraisal costs by inspecting more units as the units are are in production (during production), the company's external failure costs would most likely
A)decrease.
B)increase.
C)not be affected.
D)Unable to predict

Question

Quizplus · Accepted Answer

Increasing appraisal costs by inspecting more units during production typically leads to the early detection and correction of defects, which in turn reduces the likelihood of defective products reaching the customer. This decrease in defective products reaching the customer would lead to a decrease in external failure costs, such as warranty claims and returns.

If a Company Were to Increase Its Appraisal Costs by Inspecting