The cost of improved production equipment and production processes is a(n)
A) external failure cost.
B) internal failure cost.
C) prevention cost.
D) appraisal cost.

Question

Quizplus · Accepted Answer

The cost of improved production equipment and production processes is a prevention cost, which is aimed at preventing defects and non-conformances from occurring in the first place. These costs are incurred to prevent internal and external failure costs, such as scrap, rework, warranty claims, and customer complaints.

The Cost of Improved Production Equipment and Production Processes Is