Appraisal Costs

Appraisal Costs Examples are : -Incoming inspection and test:

Determining the quality of purchased product, whether by inspection on receipt, by inspection at the source, or by surveillance.

-In-process inspection and test:

In-process evaluation of conformance to requirements.

-Final inspection and test:

Evaluation of conformance to requirements for product acceptance.

-Document review:

Examination of paperwork to be sent to customer.

-Balancing:

Examination of various accounts to assure internal consistency.

-Product quality audits:

Performing quality audits on in-process or finished products.

-Maintaining accuracy of test equipment:

Keeping measuring instruments and equipment in calibration.

-Inspection and test materials and services:

Materials and supplies in inspection and test work (e.g., x-ray film) and services (e.g., electric power) where significant.

-Evaluation of stocks:

Testing products in field storage or in stock to evaluate degradation.

In collecting appraisal costs, what is decisive is the kind of work done and not the department name (the work may be done by chemists in the laboratory, by sorters in Operations, by testers in Inspection, or by an external firm engaged for the purpose of testing).

Also note that industries use a variety of terms for “appraisal,” e.g., checking, balancing, reconciliation, review.