Question

The most effective way to minimize quality costs while maintaining high quality is to avoid having quality problems in the first place. This is the reason for incurring appraisal costs.

True or False

Answer 1

Answer: True.

The most effective way to minimize quality costs while maintaining high quality is to avoid having quality problems in the first place, it is correct but this is the reason for incurring appraisal costs, that is also true.

Cost of quality is the methodology to prevent from poor quality. If a company wants to maintain high quality but simultaneously wants to minimize cost of quality, this will result of Appraisal cost.

Appraisal cost- This cost is a part of quality control cost. It is also known as inspection cost. It is incurred to identify defective products before they are dispatched or delivered to customers. This includes cost of inspection, field test and cost required for maintaining quality standards.