Internal failure costs are costs that:
A)are incurred to prevent quality problems from occurring in the first place.
B)are incurred to identify defective products before products are shipped to the customer.
C)result from defects that are caught before the product is shipped to the customer.
D)occur when a defective product makes its way into the hands of the customer.

Question

Quizplus · Accepted Answer

Internal failure costs are costs incurred due to defects that are caught before the product is shipped to the customer. These costs include the cost of reworking products, scrapped materials, and downtime due to quality issues. They are a result of poor quality control measures and are incurred within the organization. A and B refer to prevention costs and appraisal costs respectively, while D refers to external failure costs.

Internal Failure Costs Are Costs That