Which of the following costs would be classified as an internal failure cost on a quality report?
A)Reliability engineering.
B)Materials inspection.
C)Rework.
D)Warranty repairs.
E)Out-of-court liability settlements.

Question

Quizplus · Accepted Answer

Rework costs are considered internal failure costs as they are incurred when a product or service does not meet the desired quality standards and requires additional work to correct the defects or errors. Internal failure costs are the expenses associated with correcting defects or quality issues before a product leaves the organization. Reliability engineering is a prevention cost, materials inspection is an appraisal cost, warranty repairs are external failure costs, and out-of-court liability settlements are also external failure costs.

Which of the Following Costs Would Be Classified as an Internal