Which of the following would be classified as an internal failure cost on a quality cost report?
A) Supplies used in testing and inspection.
B) Final product testing and inspection.
C) Net cost of scrap.
D) Amortization of test equipment.

Question

Quizplus · Accepted Answer

The net cost of scrap is considered an example of an internal failure cost. Internal failure costs are costs incurred due to the fact that the product was not manufactured to the required quality specifications or standards.

Which of the Following Would Be Classified as an Internal