Costs incurred by a nonconforming product detected before it is shipped to customers are
A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.
E)design costs.

Question

Quizplus · Accepted Answer

Costs incurred by a nonconforming product detected before it is shipped to customers are internal failure costs. These costs are associated with correcting defects before the product reaches the customer. Examples of internal failure costs include rework, scrap, and downtime.

Costs Incurred by a Nonconforming Product Detected Before It Is