Which of the Following Would Be Considered a Prevention Cost

question 140

Multiple Choice

Which of the following would be considered a prevention cost of quality?

• A) inspecting incoming raw materials
• B) training workers to perform their jobs
• C) issuing a recall of defective product before another customer is injured
• D) performing a 24 hour burn-in on every item produced to make sure it works before it is shipped

---

Definitions:

Predetermined Overhead Rate

is calculated by dividing estimated manufacturing overhead cost by an allocation base, used to assign overhead costs to products or services.

Direct Labor-Hours

A measure of the amount of time workers spend on a specific task or production of a certain quantity of goods.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, rent for the production facility, and salaries of production supervisors.

Raw Materials

The basic substances from which products are made, typically used in the initial stages of the manufacturing process.