Question

In a Cost-of-Quality (COQ) reporting framework, costs incurred to keep quality defects from occurring are classified as:

A. Customer-failure costs.
B. Appraisal costs.
C. Internal failure costs.
D. Prevention costs.
E. Detection costs.

Answer 1

In a Cost-of-Quality (COQ) reporting framework, costs incurred to keep quality defects from occurring are classified as Prevention costs.

Step-by-step explanation:

In a Cost-of-Quality (COQ) reporting framework, costs incurred to keep quality defects from occurring are classified as Prevention costs. Prevention costs are incurred to prevent defects from happening in the first place, such as training workers, implementing quality control systems, and conducting preventive maintenance. These costs are considered investments in quality to reduce the likelihood of defects and improve overall performance.