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

Question

Quizplus · Accepted Answer

Rework labor and overhead is a direct cost incurred due to internal failure of quality. The other options do not deal with internal failure costs. Technical support provided to suppliers is an external cost; quality improvement projects and systems development are prevention costs.

Which of the Following Would Be Classified as an Internal