Which statement best reflects the goal of quality cost management when appraisal costs are high relative to sales?

Which statement best reflects the goal of quality cost management when appraisal costs are high relative to sales?

• A. Reducing inspections and improving process control
• B. Adding more inspectors
• C. Increasing supplier base
• D. Expanding final product testing

Answer: (A)

When appraisal costs are high, the goal of quality cost management is to lower the cost of verifying quality by preventing defects and stabilizing the process rather than adding more checks. Improving process control reduces variation and defects, so you can rely less on extensive inspections to confirm quality. This approach lowers the overall appraisal expense while maintaining or even improving quality. Adding more inspectors or expanding final product testing would increase appraisal costs, not reduce them. Increasing the supplier base doesn’t directly address the costly verification activities, and it can introduce new quality management challenges without lowering appraisal costs.

When appraisal costs are high, the goal of quality cost management is to lower the cost of verifying quality by preventing defects and stabilizing the process rather than adding more checks. Improving process control reduces variation and defects, so you can rely less on extensive inspections to confirm quality. This approach lowers the overall appraisal expense while maintaining or even improving quality.

Adding more inspectors or expanding final product testing would increase appraisal costs, not reduce them. Increasing the supplier base doesn’t directly address the costly verification activities, and it can introduce new quality management challenges without lowering appraisal costs.