Prevention costs refer to costs incurred:

A) in preventing defects.
B) because defective products or services are delivered to customers.
C) in determining customer demand.
D) when defective products or services are detected before leaving the business.

Prevention Costs

Expenditures incurred to prevent defects in products or services, including costs related to quality planning, training, and preventive maintenance.

Defects

Imperfections or faults in a product that cause it to deviate from its intended design, reducing its quality and possibly making it unfit for use.

Services

Economic activities that provide intangible benefits or assistance to consumers, businesses, or other entities.