What type of costs are incurred to avoid poor quality goods or services in the first place?
A)Appraisal costs
B)External costs
C)Prevention costs
D)Internal failure costs

Question

Quizplus · Accepted Answer

Prevention costs are incurred to avoid poor quality goods or services in the first place. These costs include the costs of designing quality into the product or service, training employees on quality principles, developing quality control processes, and testing materials and equipment. By investing in prevention costs, companies can reduce the likelihood of defects or errors, which can ultimately save money by avoiding the need for expensive appraisal and correction costs.

What Type of Costs Are Incurred to Avoid Poor Quality