Which of the following would be classified as a prevention cost on a quality cost report?
A) Disposal of defective products.
B) Net cost of spoilage.
C) Depreciation of test equipment.
D) Technical support provided to suppliers.

Question

Quizplus · Accepted Answer

Prevention costs are incurred to prevent defects from occurring in the first place. Technical support provided to suppliers helps them understand and meet quality standards, thus preventing defects. Disposal of defective products and net cost of spoilage are examples of appraisal costs, while depreciation of test equipment is an example of a internal failure cost.

Which of the Following Would Be Classified as a Prevention