Which of the following would be classified as an appraisal cost on a quality cost report?
A) Quality circles.
B) Rework labor and overhead.
C) Downtime caused by quality problems.
D) Supervision of testing and inspection activities.

Question

Quizplus · Accepted Answer

The supervision of testing and inspection activities is a cost incurred to appraise the quality of products or services and, therefore, is classified as an appraisal cost. Quality circles, rework labor and overhead, and downtime caused by quality problems are considered as internal and external failure costs.

Which of the Following Would Be Classified as an Appraisal