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 typically leads to a decrease in internal failure costs because more resources are spent on detecting defects before products leave the manufacturing process, thus reducing the occurrence of failures that would have been more costly to fix once the product is in the hands of the customer or has been shipped.

An Increase in Appraisal Costs Will Usually Result in an Increase