Costs incurred as a result of poor quality found through appraisal prior to delivery of the product to the customer are:
A)External failure costs.
B)Appraisal costs.
C)Internal failure costs.
D)Prevention costs.
E)Conformity costs.

Question

Quizplus · Accepted Answer

Costs incurred as a result of poor quality found through appraisal prior to delivery of the product to the customer are considered internal failure costs. These costs include the expenses of reworking, repairing, or scrapping the product before it is shipped to the customer.

Costs Incurred as a Result of Poor Quality Found Through