Which one of the following statements is True?
A) Appraisal costs decrease as quality level decreases.
B) Appraisal costs increase as the variation of output increases.
C) Appraisal costs increase as the variation of output decreases.
D) Appraisal costs increase as quality level increases.

Question

Quizplus · Accepted Answer

Appraisal costs, which are the costs associated with inspecting and testing to ensure products meet quality standards, tend to increase as the variation of output increases. This is because more inspection and testing are needed to identify and correct defects when there is greater variability in the products being produced.

Which One of the Following Statements Is True