The cost of inspection at various stages of production is an example of a(n)
A)prevention cost.
B)appraisal cost.
C)internal failure cost.
D)external failure cost.

Question

Quizplus · Accepted Answer

The cost of inspection is considered an appraisal cost, which is the cost of evaluating products or services to ensure they meet established standards and specifications. This is different from prevention costs, which are incurred to prevent defects from occurring in the first place, and internal and external failure costs, which are incurred as a result of defects or problems that are not caught and corrected during the production process.

The Cost of Inspection at Various Stages of Production Is