Which of the following would be classified as an appraisal cost on a quality cost report?
A) Returns and allowances arising from quality problems.
B) Downtime caused by quality problems.
C) Test and inspection of in-process goods.
D) Cost of field servicing and handling complaints.

Question

Quizplus · Accepted Answer

Appraisal costs are those incurred to determine the degree of conformance of a product or service to quality standards. Test and inspection of in-process goods are activities that help to ensure that quality standards are being met, and therefore qualify as an appraisal cost. Returns and allowances arising from quality problems and cost of field servicing and handling complaints are examples of failure costs, while downtime caused by quality problems is an example of an internal failure cost.

Which of the Following Would Be Classified as an Appraisal