Which of the following terms best describes costs incurred to detect poor quality goods or services?
A) Appraisal costs
B) Activity-based costing
C) Value engineering
D) Prevention costs

Question

Quizplus · Accepted Answer

Appraisal costs are costs incurred to detect poor quality goods or services. These costs are associated with activities such as inspection, testing, and auditing. Examples of appraisal costs include testing the functionality of a product before it is shipped to customers or conducting an audit of financial statements to ensure accuracy.

Which of the Following Terms Best Describes Costs Incurred to Detect