If a company incurred $50,000 in evaluating finished products and $10,000 in quality auditor training, how much did they spend on prevention costs?

To determine the amount spent on prevention costs, it's essential to recognize the nature of the expenses listed. Prevention costs are typically associated with activities designed to prevent defects and errors before they occur. This includes training, quality improvement initiatives, and preventative maintenance, among other things.

In this scenario, the company spent $10,000 on quality auditor training, which is classified as a prevention cost because it aims to enhance the skills and awareness of auditors to ensure that processes are conducted properly, ultimately reducing the likelihood of defects.

On the other hand, the $50,000 spent on evaluating finished products is categorized as an appraisal cost, which involves the inspection and testing of finished products to determine their conformity to requirements. Appraisal costs do not fall under prevention costs, as they occur after the processes have been completed and are aimed at identifying defects rather than preventing them.

Therefore, when calculating the total amount spent specifically on prevention costs, we only include the $10,000 for training. The other figures do not contribute to this classification. The correct answer reflects understanding that only the training cost should be considered in the prevention costs category.