Which of the following would be classified as a prevention cost on a quality cost report?
A)Lost sales arising from a reputation for poor quality.
B)Final product testing and inspection.
C)Net cost of spoilage.
D)Quality data gathering,analysis,and reporting.

Question

Quizplus · Accepted Answer

Quality data gathering, analysis, and reporting is a prevention cost because it is aimed at identifying and addressing quality issues before they occur, thus preventing defects and other quality problems from arising. The other options listed are not prevention costs, as they either relate to the cost of poor quality (option A), the cost of detecting poor quality (option B), or the cost of poor quality after it has occurred (option C).

Which of the Following Would Be Classified as a Prevention