On a Cost of Quality report, which of the following cost items should be classified as an internal failure cost?
A)Customer returns of defective products
B)Net cost of scrap
C)Training for quality control employees
D)Patent cost for a new product

Question

Quizplus · Accepted Answer

Net cost of scrap is considered an internal failure cost because it represents the cost associated with materials that were processed but did not meet quality standards before being delivered to the customer. This cost is incurred due to failures within the internal processes of the organization.

On a Cost of Quality Report, Which of the Following