True or false? According to the cost of poor quality, if your products were perfect, you could save 100% of the cost of appraising them.
- True
- False
Explanation: The correct answer is True. According to the cost of poor quality, if products were perfect and devoid of defects, there would be no need for appraisal costs since there would be no defects to identify or rectify. Appraisal costs are incurred to detect and prevent defects in products or services, which are inherent in any manufacturing or service process. These costs include inspection, testing, and quality control measures implemented to ensure that products meet specified standards and requirements. However, if products were flawless from the outset, these appraisal activities would be unnecessary, resulting in a 100% reduction in appraisal costs. Therefore, the statement is true, as achieving perfection in products eliminates the need for appraisal activities and the associated costs, aligning with the principles outlined in the cost of poor quality framework.