Ace the CAPM Adventure 2026 – Your Project Management Power-Up!

Question: 1 / 885

Which of the following is an example of prevention costs?

Costs due to firing underperforming staff

Costs due to legal settlements

Costs due to an increase number of training days

Prevention costs are expenses incurred to prevent or avoid quality problems. In this context, costs due to an increase in the number of training days represent prevention costs as training can enhance employee skills, reduce errors, and ultimately prevent quality issues from arising. On the other hand, firing underperforming staff, legal settlements, and end-of-year discounts do not fall under prevention costs but may be categorized as other types of costs such as appraisal costs, failure costs, or external failure costs respectively.

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Costs due to end-of-year discounts

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