Appraisal costs refer to costs incurred:

A) in preventing defects.
B) in determining whether defects exist.
C) because defective products or services are delivered to customers.
D) in determining customer demand.

Appraisal Costs

Expenses related to the testing and inspection of products to ensure they meet quality standards.

Defects

Imperfections or faults in a product that detract from the product's value or functionality.

Services

Intangible products that provide value or fulfill the needs of customers, such as consulting, maintenance, or education.