Internal failure costs include
A) field repairs.
B) rework.
C) returns.
D) warranty expenses.

Question

Quizplus · Accepted Answer

Internal failure costs are costs incurred due to defects found during inspection or testing before the product is shipped to the customer. Rework is the cost to fix or correct the defect before the product is shipped. Field repairs, returns, and warranty expenses are all examples of external failure costs, which occur after the product has been shipped to the customer.

Internal Failure Costs Include