Which of the following would be classified as an internal failure cost on a quality cost report?
A) Rework labour and overhead.
B) Technical support provided to suppliers.
C) Quality improvement projects.
D) Systems development.

Question

Quizplus · Accepted Answer

Rework labor and overhead are costs incurred as a result of a failure to meet internal quality standards, such as defects identified during production or quality control processes. This would be classified as an internal failure cost. The other options, technical support provided to suppliers, quality improvement projects, and systems development, are not examples of internal failure costs.

Which of the Following Would Be Classified as an Internal