Costs incurred when products and services prior to being delivered do not conform to specifications or customer needs are
A) prevention costs.
B) appraisal costs.
C) a different category of quality-related costs.
D) external failure costs.
E) internal failure costs.

Question

Quizplus · Accepted Answer

Costs incurred when products and services do not conform to specifications or customer needs prior to delivery are categorized as internal failure costs. These costs include rework, scrap, and corrective action taken to improve the quality of the product or service.

Costs Incurred When Products and Services Prior to Being Delivered