What is the primary purpose of appraisal costs?

Appraisal costs primarily focus on activities related to quality control and assurance within the production process. Their main objective is to identify and uncover defects before products are delivered to customers. By investing in appraisal costs, organizations can perform inspections, testing, and evaluations of materials and processes to ensure that products meet quality standards. This proactive approach helps prevent defective products from reaching customers, which can lead to customer dissatisfaction, returns, and damage to the company’s reputation.

The concept of appraisal costs is integral to quality management as it emphasizes the importance of detecting and addressing potential quality issues early in the production cycle. This not only mitigates financial losses associated with defective goods but also enhances customer trust and confidence in the brand.