Which statement is true concerning appraisal costs?

Question

Quizplus · Accepted Answer

Appraisal costs are the costs incurred to detect individual units of products that do not conform to specifications before they are shipped to customers. These costs are incurred to ensure that the products meet the quality standards and reduce the probability of defects. Option A is incorrect because prevention costs are incurred to prevent defects from occurring in the first place. Option C is incorrect because appraisal costs are incurred before the delivery of the products. Option D is incorrect because the costs incurred when customers discover nonconforming products at delivery are known as external failure costs.

Which Statement Is True Concerning Appraisal Costs