Prevention costs
Prevention costs are costs associated with preventing defects and imperfections from occurring.
Definition
According to Managing Quality by Foster (6th edition),
- Prevention costs. Costs associated with preventing defects and imperfections from occurring.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Prevention costs. Costs incurred to preclude the production of products that do not conform to specifications.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Prevention costs. Costs incurred to avoid poor quality goods or services.