Which of the following is NOT a prevention cost? (2024)

FAQs

Which of the following is NOT a prevention cost? ›

Final answer:

Answer. Costs associated with honoring product returns and warranty claims are not an example of prevention costs of quality.

The indirect costs associated with morbidity that did not result in healthcare were excluded from the prevention cost.

Writing of procedures, Training, Error proofing, and Planning gives an idea to manufacture the goods without any fault or defectives. These actions are considered as the prevention costs.

Answer and Explanation: Prevention costs are expenses incurred in order to avoid, eliminate, or minimize defects before they occur. Performing maintenance on manufacturing machinery is an essential part of preventing defects during production. Thus, this is a prevention cost.

The Cost of Quality can be divided into four categories. They include Prevention, Appraisal, Internal Failure and External Failure.

Office rent, for example, would qualify as an operating expense but not a direct cost, while raw materials would be a direct cost because they're tied to revenue.

Prevention costs: costs of preventing failures. Appraisal costs: costs related to measurement. Failure costs: costs incurred as a result of scrap, rework, failure, etc.

Elements of Cost: Three principal cost elements - material costs, labour costs, and overhead expenses are used for cost accounting. This has important applications in industries like engineering, where these costs interact to form the total cost of a production or service delivery.

Answer and Explanation:

Cost accountant's salary is not considered product cost because product cost is those expenses incurred in the production process of a product sold to the customers. Direct material, direct labor, and manufacturing overhead are all included in product costs.