The cost of inspection at various stages of production is an example of a(n)
A) appraisal cost.
B) prevention cost.
C) internal failure cost.
D) external failure cost.

Question

Quizplus · Accepted Answer

Inspection at various stages of production is an activity that falls under the category of appraisal costs. Appraisal costs are the costs incurred to detect defects or non-compliance with quality standards before the product is shipped to the customer. Therefore, A) appraisal cost is the best choice. B) prevention cost refers to the cost incurred to prevent defects from occurring in the first place, C) internal failure cost refers to the cost incurred due to defects found during the production process, and D) external failure cost refers to the cost incurred due to defects found after the product has been shipped to the customer.

The Cost of Inspection at Various Stages of Production Is