Costs of defective components or products that are scrapped or reworked are examples of ________ costs.
A) prevention
B) appraisal
C) internal failure
D) external failure

Question

Quizplus · Accepted Answer

Defective components that are scrapped or reworked represent a cost due to internal failure, which refers to costs incurred when a product or service fails to meet quality standards before it reaches the customer. Prevention costs are intended to prevent defects from occurring in the first place, while appraisal costs are associated with inspections and testing to ensure that products meet quality requirements. External failure costs refer to costs that arise after a product or service has been delivered to customers and may include warranty claims or legal fees.

Costs of Defective Components or Products That Are Scrapped or Reworked