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

Name: Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inspection of incoming raw materials and production loss caused by downtime are examples of appraisal costs and internal failure costs, respectively, not prevention costs. Prevention costs are incurred to prevent defects from occurring in the first place.

Inspection of Incoming Raw Materials and Production Loss Caused by Downtime