CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM Exam with challenging questions and comprehensive explanations. Utilize flashcards and multiple choice quizzes to enhance your project management knowledge. Ace your exam with confidence!

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What is an example of appraisal costs?

Costs due to severance payments
Costs due to purchasing state of the art equipment for quality assessment
Costs due to researching new markets
Costs due to employee bonuses

The correct answer is: Costs due to purchasing state of the art equipment for quality assessment

Appraisal costs are incurred to evaluate and assess the quality of products or services to ensure they meet the required standards. Purchasing state-of-the-art equipment for quality assessment directly aligns with this definition, making it an example of appraisal costs. This equipment helps in inspecting, testing, and assessing the quality of products or services, which is essential for maintaining standards and meeting customer expectations. On the other hand, the other options such as severance payments, researching new markets, and employee bonuses are not directly related to appraisal costs, making them incorrect choices.