What includes the cost of raw materials and assembly line inspections?
Appraisal costs, or
External failure costs.
The best choice is: Appraisal costs
Appraisal costs are referred to as monitoring costs or inspection costs. It includes the expenses of maintaining the quality control department; evaluation of methods, materials, and processes; and product samples used in testing. Thus cost of raw materials (product samples used in testing) and assembly line inspections is covered under appraisal ...
Answers a multiple choice question on cost of raw materials and assembly line inspections.