Which of the following statements about prevention costs is true?
A) Prevention costs are generally incurred after problems occur.
B) Design and engineering costs are not properly considered prevention costs.
C) Generally, companies find that the incurrence of prevention costs reduces long-run product failure costs.
D) None of these are true.

Question

Quizplus · Accepted Answer

Prevention costs are incurred in order to prevent or reduce the likelihood of future defects or problems. Design and engineering costs are considered prevention costs as they help prevent defects from occurring in the first place. In general, companies find that investing in prevention costs can reduce the long-run costs associated with product failures.

Which of the Following Statements About Prevention Costs Is True