Costs incurred to avoid manufacturing poor-quality goods or services are considered to be
A)appraisal costs.
B)activity-based costing.
C)prevention costs.
D)value engineering.

Question

Quizplus · Accepted Answer

Costs incurred to avoid manufacturing poor-quality goods or services are considered prevention costs. Prevention costs refer to the costs incurred to prevent defects from occurring in the first place, such as employee training, quality planning, and process control. Appraisal costs are the costs incurred to detect defects such as inspection and testing costs. Activity-based costing and value engineering are not directly related to quality control costs.

Costs Incurred to Avoid Manufacturing Poor-Quality Goods or Services Are