CPIM Practice Exam

What type of costs are associated with in-line inspections?

1. Prevention Costs

2. External Failure Costs

3. Appraisal Costs

4. Internal Failure Costs

The correct answer is: Appraisal Costs

In-line inspections are quality control processes conducted during production to ensure that products meet specified standards and requirements. The associated costs are primarily seen as appraisal costs. Appraisal costs are incurred to evaluate the products or services for conformance to quality standards before they reach the customer. This includes the cost of inspections, testing, and the monitoring of processes to identify defects early. In-line inspections help to catch issues as they occur, thus enabling corrective actions to be taken promptly before products are completed and shipped. By investing in in-line inspections, organizations can minimize the likelihood of defective products reaching the market, which can ultimately reduce costs associated with rework and failures. Thus, the cost associated with in-line inspections is accurately classified as appraisal costs, reflecting the proactive steps taken to ensure quality and reduce potential failure rates.