What do you call the costs incurred to avoid production of poor quality goods or services?
A) External failure costs
B) Internal failure costs
C) Appraisal costs
D) Prevention costs

Question

Quizplus · Accepted Answer

Prevention costs are incurred to prevent poor quality goods or services from being produced in the first place. This can include activities such as employee training, equipment maintenance, and process improvement.

What Do You Call the Costs Incurred to Avoid Production