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Appraisal Costs Definition and Explanation PDF | Download eBooks

Learn Appraisal Costs definition in total quality management with explanation to study “What are Appraisal Costs”. Study appraisal costs explanation with TQM terms to review total quality management course for online MBA programs.

Appraisal Costs Definitions:

  1. Appraisal costs are termed as the expenses associated with the direct costs of measuring quality.

    Managing Quality: Integrating the Supply Chain by S. Thomas Foster

  2. Appraisal costs are those costs associated with measuring, evaluating, or auditing products, components, and purchased materials to ensure conformance to the standards that have been imposed.

    Introduction to Statistical Quality Control by Douglas C. Montgomery

Appraisal Costs Explanation:

For quality improvements, some steps need to be taken which can incur cost to an organization. One of the cost of quality is termed as appraisal cost. Appraisal cost is the cost associated with the quality control activities of an organization. For controlling and improving quality, one way is to inspect the products before they are shipped to the customer. Moreover, online inspection can be performed which is identification of defective products during the manufacturing process. All the cost related to the inspection are appraisal costs. For inspection, a team of quality inspectors is to be formed and managed. This is sometimes costly for an organization and this cost can also be termed as appraisal cost.

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