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Appraisal costs refer to expenses incurred to determine whether a product or service meets quality standards. These costs are primarily associated with activities that assess quality, including inspections, tests, and audits. By performing these evaluations, organizations can identify defects or nonconformities before products reach customers, allowing them to reduce the risk of failures and improve overall quality.
In contrast, product recalls are typically related to the costs incurred after a defective product is found in the market, and while they may involve some appraisal activities to investigate the issue, they are not categorized as appraisal costs. Training employees involves preparation and educational expenses that are aimed at improving performance but is more accurately classified as prevention costs. Equipment downtime refers to the time during which machinery is not operational, which generally falls under the category of internal failure costs because it may lead to production delays and inefficiencies, rather than being directly tied to the quality appraisal processes.