Question

Money spent training an employee how to do a job mistake free is an example of an appraisal cost.

True or False

Answer 1

False. Money spent training an employee how to do a job mistake-free is an example of a prevention cost, not an appraisal cost.

Step-by-step explanation:

False. Money spent training an employee how to do a job mistake-free is an example of a prevention cost, not an appraisal cost.

An appraisal cost refers to the cost incurred in evaluating products, services, or processes to ensure that they meet quality standards. Examples of appraisal costs include inspections, tests, audits, and quality control activities.

On the other hand, a prevention cost refers to the cost incurred to prevent defects or errors from occurring in the first place. It includes activities such as training, design reviews, process improvements, and equipment maintenance.