Which of the following would be classified as an internal failure cost on a quality cost report?
A) Supplies used in testing and inspection.
B) Final product testing and inspection.
C) Net cost of scrap.
D) Amortization of test equipment.

Question

Quizplus · Accepted Answer

Internal failure cost refers to the costs associated with defects or quality issues that are detected before the product is delivered to the customer. The net cost of scrap is an example of an internal failure cost as it represents the cost of materials and resources that were wasted due to defects in the production process. Option A and D are examples of prevention and appraisal costs, while option B refers to external failure costs.

Which of the Following Would Be Classified as an Internal