Costs incurred to avoid manufacturing poor quality goods are considered to be
A)appraisal costs.
B)activity-based costing.
C)prevention costs.
D)value engineering.

Question

Quizplus · Accepted Answer

Costs incurred to avoid manufacturing poor quality goods are known as prevention costs. These costs are incurred to prevent defects from occurring in the first place. Appraisal costs are costs incurred to detect defects. Activity-based costing is a costing technique used to determine the cost of specific activities or processes within an organization. Value engineering is a systematic approach aimed at improving the value of goods or services by examining the function of various components and reducing costs while maintaining quality.

Costs Incurred to Avoid Manufacturing Poor Quality Goods Are Considered