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

Question

Quizplus · Accepted Answer

Internal failure costs are costs associated with rework, scrap, or other errors that occur before a product is delivered to the customer. Rework labour and overhead would fall under this category. Technical support provided to suppliers, quality improvement projects, and systems development would not be considered internal failure costs.

Which of the Following Would Be Classified as an Internal