Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs.

Question

Quizplus · Accepted Answer

Inspection of incoming raw materials is an example of appraisal costs, and production loss caused by downtime is considered an internal failure cost, not prevention costs. Prevention costs are expenses incurred to avoid defects and errors in products, such as training, quality planning, and supplier evaluation.

Inspection of Incoming Raw Materials and Production Loss Caused by Downtime