Prevention Costs Definition | Becker

Accounting Dictionary

Prevention Costs

 

  1. In quality control, prevention costs are costs to prevent the production of defective units. These costs include inspection costs, preventive maintenance, redesign of products, redesign of processes, and the search for higher-quality suppliers. See also appraisal costs. Costs incurred by an entity to prevent defects in the products or services it produces. Examples include inspection, design, and quality training.

 

Related Terms:

Appraisal Costs [BAR]Back to Dictionary

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