Difference between prevention costs and appraisal cost
Prevention costs and appraisal cost are two types of quality costs that companies may incur to ensure that their products or services meet certain quality standards.
Prevention costs are costs that are incurred to prevent defects from occurring in the first place. These costs are associated with activities such as quality planning, training, and process improvement. Examples of prevention costs include quality control procedures, supplier evaluations, and quality training programs for employees.
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On the other hand, appraisal costs are costs that are incurred to identify defects or errors that have already occurred. These costs are associated with activities such as inspections, testing, and audits. Examples of appraisal costs include testing equipment, quality inspections, and product certifications.
To summarize, prevention costs aim to prevent defects from happening, whereas appraisal costs aim to identify and address defects after they have already occurred. Both types of costs are important to ensure high-quality products or services, but prevention costs are generally considered more cost-effective in the long run.
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