Question

Question:The following table lists all costs of quality incurred by Sam’s Surf Shop last year. What was Sam’s appraisal cost for quality last year?

Annual inspection cost	\(155,000
The annual cost of scarp materials	\)286,000
Annual rework cost	\(34,679
The annual cost of quality training	\)456,000
Annual warranty cost	\(1,546,000
Annual testing cost	\)543,000

Short answer

Answer

The appraisal cost for Sam will be $698,000.

Step-by-step solution

About Appraisal cost

The Appraisal cost is a fee that is paid to a person or an expert for detecting any default in the final product before selling it to the customers

Calculate the Appraisal cost

The formula to calculate the appraisal cost,

Appraisal cost =Annual inspection cost + Annual testing cost

= $155,000 + $543,000

= $698,000.