What would be the total internal failure cost appearing on the quality cost report?
A)$124,000
B)$113,000
C)$121,000
D)$64,000

Question

Quizplus · Accepted Answer

The internal failure costs include rework costs ($40,000 + $30,000 + $20,000 = $90,000), scrap costs ($10,000), and downtime costs ($13,000). The total internal failure cost is therefore $90,000 + $10,000 + $13,000 = $113,000. Therefore, the best choice would be option B.

What Would Be the Total Internal Failure Cost Appearing on the Quality