Which of the following is an example of a prevention cost?
A) Downtime
B) Inventory inspection
C) Product design
D) Repair and rework

Question

Quizplus · Accepted Answer

Prevention costs are costs incurred to prevent defects from occurring in the production process or mistakes in delivering services. Product design is a preventive measure aimed at reducing defects before production begins.

Note: 
A - Downtime is a cost associated with internal failure where production process is stopped due to a defect or breakdown. 
B - Inventory inspection is a cost associated with appraisal where items are inspected to determine conformity to quality standards. 
D - Repair and rework is a cost associated with internal failure where defective products are repaired or reworked to meet quality standards.

Which of the Following Is an Example of a Prevention