On a Cost of Quality report, which of the following cost items should be classified as a prevention cost?
A)Technical support provided to suppliers
B)Warranty expenses on defective products
C)Supervision of quality inspections
D)Net cost of spoiled units

Question

Quizplus · Accepted Answer

Prevention costs are costs incurred to prevent defects and errors from occurring in the first place. Technical support provided to suppliers falls under prevention costs as it helps in preventing defects by ensuring that the suppliers are producing high-quality materials. Warranty expenses on defective products, supervision of quality inspections, and net cost of spoiled units are all examples of appraisal and internal failure costs.

On a Cost of Quality Report, Which of the Following