Question

what would be the total appraisal cost appearing on the quality cost repor

ppendix 1A Saved Fackler Company's quality cost report is to be based on the following data: wo 10:02 Quality circles $12,000 Product recalls $24,000 Supplies used in testing and inspection $87,000 Net cost of scrap $59,000 Liability arising from defective products $38,000 Re-entering data because of keying errors $65,000 Debugging software errors $19,000 Test and inspection of incoming materials $65,000 Quality data gathering, analysis, and $55,000 reporting What would be the total appraisal cost appearing on the quality cost report? Multiple Choice O $130.000 O $152.000 < Piny 3 of 10 !!! Next > previous re to search O Ri F3 F4 PrtSen F5 Home F6 F7 8 $ %

Answer 1

Answer: $152,000

Explanation:

Appraisal costs are the costs that a company incurs to detect defective inventory before it is shipped to customers. These costs must be incurred in order to keep defective goods from being sold to customers.

Examples:

• The inspection of materials delivered from suppliers
• Supervision of the inspection staff
• The inventory destroyed as part of the testing process

Total appraisal cost:

Supplies used in testing and inspection	$87,000
Test and inspection of incomeing materials	$65,000
Total appraisal cost	$152,000