The costs in the list that would be classified as prevention costs on a Cost of Quality report are design engineering, supplier evaluation, and labor training. These three items are $300,000 for design engineering, $240,000 for supplier evaluation, and $150,000 for labor training, for a total of $690,000 in prevention costs. Design engineering is a prevention cost because flaws in design become defective products. Quality engineering at the design stage prevents defective products. Supplier evaluation includes reviewing the work done by a potential supplier before placing the first order in order to determine whether the supplier does quality work as well as ongoing review of the work performed. It also includes evaluation of the supplier's viability as a continuing enterprise in order to prevent a potential supply disruption that would be caused by the supplier's going out of business. Quality labor training helps to prevent human errors that can lead to the production of defective products.
This answer identifies supplier evaluation and labor training as prevention costs, but those are not the only prevention costs listed.
This answer identifies design engineering and labor training as prevention costs, but those are not the only prevention costs listed.
This answer identifies product testing as a prevention cost. Product testing is an appraisal cost, not a prevention cost.
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