(Appendix 11A)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

Prevention costs are incurred to prevent defects from occurring, and systems development falls under this category as it involves developing procedures and processes to ensure quality throughout the production process. A is a cost of appraisal as it involves servicing and handling complaints after the fact, B is a cost of external failure as it involves replacing or repairing defective products after they have been sold, and D is a cost of internal failure as it involves correcting defects found in the production process.

(Appendix 11A)Which of the Following Would Be Classified as a Prevention