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Costs that are incurred to prevent low quality goods production are classified as

A. costs of quality

B. costs of learning

C. costs of reengineering

D. costs of spoilage inventory

Answer: Option A

Solution(By Examveda Team)

Costs that are incurred to prevent low quality goods production are classified as costs of quality. Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization's products or services, and that result from internal and external failures.

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