CAPM (Certified Associate in Project Management) Practice Exam

Which activity is associated with prevention costs?

1. Hiring legal counsel

2. Developing a regression test plan

3. Cutting down production time

4. Increasing marketing efforts

The correct answer is: Developing a regression test plan

The activity associated with prevention costs is B. Prevention costs are expenses incurred to prevent or reduce the occurrence of defects in products or services. Hiring legal counsel (A) is an example of an appraisal cost as it is a cost incurred to evaluate the quality of products or services. Cutting down production time (C) and increasing marketing efforts (D) are examples of internal failure costs as they are costs incurred due to defective products or services. While these activities may indirectly contribute to preventing defects, they are not direct prevention measures. Developing a regression test plan (B) involves testing the reliability and functionality of a system, which directly contributes to preventing defects and errors. Therefore, it is the most appropriate activity associated with prevention costs.