Which cost category includes establishing specifications, quality plans, and maintenance systems to prevent quality problems?

Which cost category includes establishing specifications, quality plans, and maintenance systems to prevent quality problems?

• A. Prevention Costs
• B. Appraisal Costs
• C. Internal Failure Costs
• D. External Failure Costs

Answer: (A)

Preventing defects is the focus here. The activities of establishing specifications, creating quality plans, and maintaining systems are all proactive steps designed to stop problems before they happen. That’s why they belong to Prevention Costs—the investments made to build quality into the product or process. In contrast, appraisal costs cover activities that detect defects after they’re created (like inspections and testing). Internal failure costs arise from defects found before the product reaches the customer (rework, scrap), and external failure costs come from defects discovered after delivery (returns, warranties). So the described items are the preventive side of quality costs.

Preventing defects is the focus here. The activities of establishing specifications, creating quality plans, and maintaining systems are all proactive steps designed to stop problems before they happen. That’s why they belong to Prevention Costs—the investments made to build quality into the product or process.

In contrast, appraisal costs cover activities that detect defects after they’re created (like inspections and testing). Internal failure costs arise from defects found before the product reaches the customer (rework, scrap), and external failure costs come from defects discovered after delivery (returns, warranties). So the described items are the preventive side of quality costs.