Costs incurred to avoid nonconforming products are:
A) prevention costs.
B) appraisal costs.
C) failure costs.
D) voluntary costs.

Question

Quizplus · Accepted Answer

Costs incurred to avoid nonconforming products are referred to as prevention costs. These costs are incurred to prevent defects or errors from occurring in the first place. They include activities like training, process control, and design reviews, which aim to identify and eliminate potential issues before they become problems.

Costs Incurred to Avoid Nonconforming Products Are