In: Operations Management
Which of the following is an appraisal cost?
a.Training program for production line workers
b.Inspecting parts as they come off the assembly line
c.Reworking a product that failed inspection
b.Inspecting parts as they come off the assembly line
This is the cost used to detect defective inventory before it is being shipped to the customers finally. Hence, inspecting parts is an example of appraisal cost