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    Cost of raw materials and assembly line inspections

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    What includes the cost of raw materials and assembly line inspections?

    Prevention costs,
    Internal costs,
    Appraisal costs, or
    External failure costs.

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    Solution Preview

    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 ...

    Solution Summary

    Answers a multiple choice question on cost of raw materials and assembly line inspections.