In a COQ reporting framework,the cost of scrap,rework,and tooling changes are categorized as a(n):
A)External failure cost.
B)Internal failure cost.
C)Manufacturing overhead cost.
D)Avoidable cost.
E)Appraisal cost.

Question

Quizplus · Accepted Answer

Scrap, rework, and tooling changes are all costs associated with failure to meet quality standards within the manufacturing process, which falls under the category of internal failure costs in a COQ reporting framework.

In a COQ Reporting Framework,the Cost of Scrap,rework,and Tooling Changes