Which of the following would be classified as a prevention cost on a quality cost report?
A) Supplies used in testing and inspection.
B) Debugging software errors.
C) Quality improvement projects.
D) Lost sales arising from a reputation for poor quality.

Question

Quizplus · Accepted Answer

Quality improvement projects are considered prevention costs because they are incurred to prevent defects from occurring in the first place. These costs are aimed at ensuring quality is built into the process from the start, thereby reducing the need for inspection, testing, and correction of defects after they have occurred.

Which of the Following Would Be Classified as a Prevention