Which of the following would be classified as a prevention cost on a quality cost report?
A) Net cost of spoilage.
B) Supervision of testing and inspection activities.
C) Liability arising from defective products.
D) Technical support provided to suppliers.

Question

Quizplus · Accepted Answer

Prevention costs are expenses incurred to prevent defects in products or services. Technical support provided to suppliers is a prevention cost because it aims to ensure the quality of components or materials supplied, thereby preventing defects in the final product.

Which of the Following Would Be Classified as a Prevention