Question

Appraisal costs are costs incurred​ ________. A. after the company delivers poorminus quality goods or services to customers and then has to make things right with the customer B. to detect poor minus quality ​materials, goods, or services C. when the company corrects poorminusquality goods or services before delivery to customers D. to avoid poorminusquality goods or services

Answer 1

Answer:

Correct answer is option B

Appraisal costs are costs incurred​ to detect poor minus quality ​materials, goods, or services

Explanation:

Lets analyze each given option:

A. after the company delivers poor minus quality goods or services to customers and then has to make things right with the customer:

This case corresponds to external failure costs, the costs incurred after the poor quality goods or services are delivered to customers to make things right with the customers.

B. to detect poor minus quality ​materials, goods, or services:

This case corresponds to appraisal costs, the cost incurred to detect the poor quality goods or services.

C. when the company corrects poor minus quality goods or services before delivery to customers:

This case corresponds to internal failure costs, the costs incurred due to correction before the poor quality goods or services are delivered to customers.

D. to avoid poor minus quality goods or services:

This case corresponds to prevention costs, the costs incurred to avoid poor quality goods or services.

Therefore, the correct answer is option B.

Answer 2

Answer:

D. to avoid poor minus quality goods or services