Preventive equipment maintenance is an example of:
A)prevention costs
B)appraisal costs
C)internal failure costs
D)external failure costs

Question

Quizplus · Accepted Answer

Preventive equipment maintenance is a cost incurred to prevent defects or issues from arising in the first place. This falls under the category of prevention costs, which are costs incurred to prevent quality issues from arising. Appraisal costs are incurred to check the quality of products or services, internal failure costs are incurred as a result of quality issues within the organization, and external failure costs are incurred due to quality issues that have affected the customer or outside stakeholders.

Preventive Equipment Maintenance Is an Example Of