Appraisal Costs Notes: Definitions & Explanations PDF | Download eBooks
Study Appraisal Costs lecture notes PDF with project management definitions and explanation to study What are Appraisal Costs?. Study appraisal costs explanation with project management terms to review project management course for online MBA programs.
Appraisal Costs Definition:
Appraisal costs are costs associated with evaluation of product or process to ascertain how well all of the requirements of the customer have been met.
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Appraisal Costs Notes:
Quality management involves processes and activities that help to prevent quality defects, and assure and control the quality in return. Just as important it is to adopt quality management within the organization, it is also important to calculate the costs associated with the quality. Quality related costs are called costs of quality. Cost of quality is the cost that is incurred when an organization tends to assure and control quality of the produced products. One of the cost of quality is appraisal cost. Appraisal costs are the costs that are incurred when efforts are made to check whether the produced products are according to the specifications. These costs are associated with both quality of the designs and the finished good. Examples of appraisal costs are cost of inspection, cost of testing, cost associated with supplier control etc.
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