Question

Sanford Corp. bought new technological systems to inspect the quality of products as they come off the production line. The expense of operating these systems would be an example of which of the following types of quality-related costs?

a.Internal failure cost
b.Appraisal cost
c.External failure cost
d.Prevention cost

Answer 1

b.Appraisal cost

Step-by-step explanation:

Appraisal costs are a specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements. These costs could include expenses for field tests and inspections.