Which of the following would be classified as a prevention cost on a quality cost report?
A) Cost of field servicing and handling complaints.
B) Warranty repairs and replacements.
C) Systems development.
D) Rework labor and overhead.

Question

Quizplus · Accepted Answer

Prevention costs are costs incurred to prevent defects from occurring in the first place. Systems development can help prevent defects by designing processes and systems that result in fewer defects. Field servicing and handling complaints, warranty repairs and replacements, and rework labor and overhead are all examples of other quality cost categories such as appraisal costs, internal failure costs, and external failure costs.

Which of the Following Would Be Classified as a Prevention