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 labour and overhead.

Question

Quizplus · Accepted Answer

Systems development is a prevention cost because it involves the creation and implementation of systems and processes that will prevent quality issues from occurring in the first place. Prevention costs are incurred to prevent defects or other quality problems from occurring, whereas the other options listed are all costs associated with correcting problems that have already occurred.

Which of the Following Would Be Classified as a Prevention