Which one of the following is part of prevention costs?
A) the costs of quality audits
B) the costs resulting from scrap
C) the costs of improving process design and product design
D) the costs of lawsuits from injury from use of the product

Question

Quizplus · Accepted Answer

Prevention costs are costs incurred to prevent defects from occurring in the first place. The costs of improving process design and product design are part of prevention costs. The costs of quality audits and the costs resulting from scrap are part of appraisal costs and internal failure costs respectively. The costs of lawsuits from injury from use of the product are part of external failure costs.

Which One of the Following Is Part of Prevention Costs