Which of the following would be classified as a prevention cost on a quality cost report?
A) Cost of field servicing and handling complaints.
B) Warranty repairs and replacements.
C) Systems development.
D) Rework labour and overhead.

Question

Quizplus · Accepted Answer

Systems development is a cost incurred to prevent quality issues from occurring in the first place. Prevention costs are those costs incurred to prevent quality problems or other failures from occurring. Examples of prevention costs include employee training, equipment maintenance, quality planning, and process improvement initiatives, among others. The other choices listed (A, B, and D) are considered appraisal costs or internal and external failure costs.

Which of the Following Would Be Classified as a Prevention