The Impact of Appraisal Costs in the Final Product Cost

[Mario Varella]

Hi all,

Does anyone tell me about the impact of appraisal costs in the final product cost? I was told this costs can be upper then 7%! Is that true in software industry?

Thanks for any help.

[Jim Wynne]

Originally Posted by Mario Varella

Hi all,

Does anyone tell me about the impact of appraisal costs in the final product cost? I was told this costs can be upper then 7%! Is that true in software industry?

Thanks for any help.

"Software" is a mighty broad category, ranging from things that are commonly referred to as "firmware," imbedded on an EEPROM, intended to control some aspect of the operation of a hardware device, to huge commercial applications such as word processors and spreadsheets. In the former category, appraisal costs will be much lower than in the latter. I don't think it would be particularly unusual for appraisal costs to exceed 7% in complex applications.