Which is NOT considered a component of prevention costs?

In the context of quality management and cost analysis, prevention costs are associated with activities designed to prevent defects and ensure quality throughout the production process. Components of prevention costs typically include quality planning, training programs for employees, and process control measures that help maintain quality standards from the outset.

Inspections in production, however, are classified as an internal failure cost or appraisal cost, not as a prevention cost. These inspections are conducted to catch defects before products reach customers, reflecting a reactive rather than proactive approach. By identifying issues during production, inspections highlight problems that have already occurred, which contrasts with prevention practices aimed at eliminating defects entirely before they arise. Therefore, this distinction is what makes inspections in production not a component of prevention costs. Understanding this differentiation helps in effectively managing costs in supply chains and ensuring a focus on quality assurance strategies.