Question

An increase in appraisal costs will probably lead to a decrease in internal failure costs and an increase in external failure costs.
True or False?

Answer 1

Answer:

False

Explanation:

An increase in appraisal costs will probably lead to a decrease in internal failure costs and an increase in external failure costs is a false statement as costs associated with measuring, evaluating or auditing products or services to assure great quality is the appraisal costs.

Internal Failure Costs: Costs emanating of products or services not corresponding to demands or consumer/user requirements. You would willingly have this outside of the failure costs

External Failure Costs: Costs occurring from products or services not adhering to demands or consumer/user requirements AFTER shipment or consignment of the goods.