ACCA MA · Chapter 9 · Question 8 of 11
Under a total quality management approach, how is the cost of inspecting raw materials when they arrive classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Appraisal cost
Explanation
Appraisal costs are incurred to check whether output and inputs meet quality standards, for example inspection and testing. Prevention costs stop defects happening in the first place (such as training). Failure costs arise after a defect has occurred, either before delivery (internal) or after (external).
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