Which of the following is an internal failure that should be considered in a quality/cost study of Honey Nuggets cereal?
A) How much the firm spends for appraising quality during production
B) Expenses incurred during production before bad products leave the plant
C) How much the firm spends to prevent production of defective products
D) Expenses incurred after bad products reach the consumer
E) All of these

Question

Quizplus · Accepted Answer

Internal failures refer to defects that are identified before a product is shipped to the customer. Option B refers to expenses incurred during production before bad products leave the plant, making it an internal failure. Options A and C refer to appraisal and prevention costs, respectively, which are not considered failures. Option D refers to external failure costs, which occur when bad products reach the consumer. Option E is incorrect as not all options are related to internal failures.

Which of the Following Is an Internal Failure That Should