An increase in appraisal costs will usually result in an increase in which of the following?
A) Prevention costs.
B) Internal failure costs.
C) External failure costs.
D) Opportunity costs.

Question

Quizplus · Accepted Answer

An increase in appraisal costs, which are costs associated with measuring and monitoring activities to ensure quality, often leads to a reduction in internal failure costs, not an increase. However, if appraisal efforts are not effective, internal failure costs might increase due to undetected defects.

An Increase in Appraisal Costs Will Usually Result in an Increase