Which of the following would be classified as a prevention cost on a quality cost report?
A)Technical support provided to suppliers.
B)Rework labor and overhead.
C)Net cost of scrap.
D)Debugging software errors.

Question

Quizplus · Accepted Answer

Prevention costs are incurred to prevent defects from occurring in the first place. Technical support provided to suppliers would help prevent defects in the materials or products provided to the company, making it a prevention cost. The other options are not prevention costs; rework labor and overhead, net cost of scrap, and debugging software errors are all examples of appraisal or internal failure costs.

Which of the Following Would Be Classified as a Prevention