The costs of material,labor,and overhead incurred when scrapping a defective product prior to customer delivery are:
A)appraisal costs.
B)external failure costs.
C)prevention costs.
D)internal failure costs.

Question

Quizplus · Accepted Answer

Defective products that are scrapped before customer delivery are considered internal failures because they are caught before leaving the organization. The costs associated with scrapping these products, including material, labor, and overhead, are considered internal failure costs.

The Costs of Material,labor,and Overhead Incurred When Scrapping a Defective