Costs incurred to avoid providing poor quality services would be considered to be
A)appraisal costs.
B)activity-based costing.
C)prevention costs.
D)value engineering.

Question

Quizplus · Accepted Answer

Prevention costs are costs incurred to prevent poor quality products or services from being produced, while appraisal costs are incurred to detect defects before delivery. Activity-based costing is a cost accounting method that allocates costs to specific activities, and value engineering is a process of re-evaluating a product or service to reduce costs while maintaining or improving quality. Therefore, the best choice is C, prevention costs.

Costs Incurred to Avoid Providing Poor Quality Services Would Be