Appraisal costs refer to costs incurred:
A) in preventing defects.
B) in determining whether defects exist.
C) because defective products or services are delivered to customers.
D) in determining customer demand.

Question

Quizplus · Accepted Answer

Appraisal costs are costs incurred to determine whether defects exist in the products or services being produced. These costs are associated with inspection and testing to detect and isolate defective products or services before they are shipped to customers.

Appraisal Costs Refer to Costs Incurred