Asked by maung sithusoe on May 07, 2024
Verified
From the provided schedule of activity costs, determine the appraisal costs.
A) $50,000
B) $23,000
C) $73,000
D) $104,000
Appraisal Costs
Expenses incurred to inspect and test materials and products to ensure they meet the required quality standards.
Activity Costs
Expenses related to the specific activities or operations within a company, often used in activity-based costing.
- Perceive the consequences of classifying costs based on quality on operational efficiency.
Verified Answer
CN
colin niningerMay 12, 2024
Final Answer :
C
Explanation :
Appraisal costs are the costs associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements. These include costs related to inspection and testing. Without the specific details of the schedule of activity costs, it's impossible to accurately determine which figure represents appraisal costs. However, if C) $73,000 is identified as the correct answer, it implies that within the context provided, this amount was allocated for activities related to appraisal costs.
Learning Objectives
- Perceive the consequences of classifying costs based on quality on operational efficiency.