Examveda
Examveda

Costs that are incurred to find manufactured products, which does not meet specifications are called

A. prevention costs

B. external failure costs

C. appraisal costs

D. internal failure costs

Answer: Option C

Solution(By Examveda Team)

Costs that are incurred to find manufactured products, which does not meet specifications are called appraisal costs. Appraisal costs are a specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements. These costs could include expenses for field tests and inspections.

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