The cost to improve equipment and processes comes under which of the following cost categories?
A) Prevention cost
B) External failure cost
C) Appraisal cost
D) Internal failure cost

Question

Quizplus · Accepted Answer

The cost to improve equipment and processes is considered a prevention cost, which is a type of cost incurred to prevent defects from occurring in the first place. These costs are usually associated with processes or systems that are designed to prevent or identify defects before they occur. Improving equipment and processes helps to prevent defects and errors from happening, making it a prevention cost.

The Cost to Improve Equipment and Processes Comes Under Which