Inspection of incoming materials and production loss caused by downtime are examples of prevention costs.

Question

Quizplus · Accepted Answer

Inspection of incoming materials is an example of appraisal costs, and production loss caused by downtime is considered an internal failure cost, not prevention costs. Prevention costs are expenses incurred to avoid defects before they happen, such as training, quality planning, and process control.

Inspection of Incoming Materials and Production Loss Caused by Downtime