CAPM (Certified Associate in Project Management) Practice Exam

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Study for the CAPM Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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Why are appraisal costs incurred?

To identify investment opportunities
To assess the quality
To reduce employee turnover
To increase stock value

The correct answer is: To assess the quality

Appraisal costs are incurred to assess the quality of products or services. These costs are related to activities such as inspections, testing, and quality reviews that are undertaken to ensure that products or services meet quality standards. By investing in appraisal costs, organizations can identify defects early in the process, prevent defective products from reaching customers, and ultimately improve the overall quality of their deliverables.