Appraisal costs are incurred to identify defective products before they are shipped to customers.

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Appraisal costs are a type of quality control cost that is incurred to detect defects or errors in products before they leave the factory or warehouse. The purpose of these costs is to ensure that the products meet the specifications and quality standards of the company and the customers. Examples of appraisal costs include inspection, testing, and process control. By investing in these activities, companies can reduce the risk of customer complaints, returns, and recalls, which can be much more expensive than the appraisal costs themselves.

Appraisal Costs Are Incurred to Identify Defective Products Before They