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Appraisal Cost<br />

21<br />

<br />

The costs associated with measuring, evaluating or auditing products or<br />

services to assure conformance to quality standards and performance<br />

requirements.<br />

<br />

Any defective parts and products should be caught as early as possible in<br />

the production process.<br />

<br />

Appraisal costs, which are sometimes called inspection costs, are incurred to<br />

identify defective products before the products are shipped to customers.<br />

<br />

These include the costs of:<br />

<br />

<br />

<br />

<br />

Inspections<br />

Testing<br />

Maintenance of test equipment<br />

Supervision of testing and inspection activities<br />

Engr. Ali Javed

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