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All relevant specialties should be included when designing
Prevention Cost
Costs incurred to prevent defects in products or services, part of Quality Costs.
Internal Failure Costs
Costs incurred when a product or service does not meet quality standards before being delivered to the customer, including scrap and rework expenses.
Product Cost Method
An accounting method that determines the cost to produce a product by summing the costs of raw materials, direct labor, and allocated overhead.
Invested Assets
Assets that are purchased or acquired for the purpose of generating income, capital appreciation, or other benefits to the investor.
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