Which of the following would be classified as a prevention cost on a quality cost report?
A) Re-entering data because of keying errors.
B) Rework labour and overhead.
C) Net cost of scrap.
D) Technical support provided to suppliers.

Question

Quizplus · Accepted Answer

Technical support provided to suppliers is considered a prevention cost as it helps to prevent defects or issues from occurring in the first place. The other options, such as re-entering data, rework labour and overhead, and net cost of scrap, are all examples of appraisal or failure costs, which are incurred after the product or service has already been produced and may have quality issues.

Which of the Following Would Be Classified as a Prevention