How much will appraisal costs change assuming the new prevention methods reduce the amount of material failures during the appraisal phase by 40 percent?
A) $160,000 decrease
B) $40,000 increase
C) $20,000 decrease
D) $8,000 decrease
E) $7,450 decrease

Question

Quizplus · Accepted Answer

There is no information given about the initial cost of appraisal or the total number of material failures during the appraisal phase, so we cannot determine the exact cost savings. However, we know that the cost reduction will be a 40% decrease, and only option C presents a decrease in cost. The other answer choices present an increase in cost or a specific cost reduction value that cannot be calculated without additional information. Therefore, option C is the best choice.

How Much Will Appraisal Costs Change Assuming the New Prevention