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

Test and inspection of in-process goods is a preventive measure to avoid quality problems and is therefore classified as an appraisal cost on a quality cost report. Returns and allowances arising from quality problems, downtime caused by quality problems, and cost of field servicing and handling complaints are all examples of failure costs.

Which of the Following Would Be Classified as an Appraisal