Newman Co. provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?
A) External failure cost
B) Prevention cost
C) Internal failure cost
D) Appraisal (detection) cost

Question

Quizplus · Accepted Answer

Providing training and technical support to suppliers is an example of prevention cost, which is a cost incurred to prevent defects from occurring in the first place. This is aimed at improving the quality of purchased raw materials before they reach the production process.

Newman Co Provides Training and Technical Support to Its Suppliers in in Order