Question

In: Statistics and Probability

Which of the following is an example of appraisal cost: A. Scrap B. Complaint adjustment C....

Which of the following is an example of appraisal cost:

A.
Scrap

B.
Complaint adjustment

C.
Product/process design

D.
Product inspection and test

It's a multiple choice question

Solutions

Expert Solution

Appraisal costs are those related to the detection of defects. This cost category includes the costs of inspection, testing, and other measures used to separate good product from bad.

Appraisal Costs example are:-
Test and inspection
Maintenance and calibration
Test equipment depreciation
Line quality engineering
Installation testings

Here product inspection & test is example of appraisal cost

Answer :- product inspection & test


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