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 are associated with measuring and monitoring activities to ensure quality. As the variation of output increases, more resources are needed to inspect and test products, leading to higher appraisal costs.

Which One of the Following Statements Is TRUE