Prevention costs include ______.
A)costs incurred to prevent defects and errors from occurring before manufacturing the product or delivering the service
B)costs of inspecting employees after they have manufactured a product
C)costs of managing product returns
D)liability resulting from product defects

Question

Quizplus · Accepted Answer

Prevention costs are the costs incurred to prevent defects and errors from occurring before manufacturing the product or delivering the service. It involves activities such as training employees, improving processes, and implementing quality assurance systems. Options B, C, and D are not prevention costs but rather relate to appraisal costs, internal failure costs, and external failure costs, respectively.

Prevention Costs Include ______