Which of the following terms best describes costs incurred to avoid poor quality goods or services?
A) Appraisal costs
B) Activity-based costing
C) Value engineering
D) Prevention costs

Question

Quizplus · Accepted Answer

Prevention costs refer to the costs incurred to prevent poor quality goods or services. This includes costs associated with implementing and maintaining quality management systems, employee training, quality planning, and process improvements. Appraisal costs, on the other hand, refer to the costs associated with inspecting and testing products or services to ensure they meet quality standards. Activity-based costing is a method used to allocate costs to specific activities or processes, while value engineering involves analyzing and improving the value of a product or service by reducing costs while maintaining or improving quality.

Which of the Following Terms Best Describes Costs Incurred to Avoid