The cost of downtime caused by quality problems with the raw materials would be classified as a(n)
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.

Question

Quizplus · Accepted Answer

The cost of downtime caused by quality problems with raw materials would be classified as an internal failure cost, as it is a cost incurred as a result of defects discovered during production or prior to delivery to a customer. Internal failure costs are incurred to correct defects found before the product is shipped to customers, and can include costs such as rework, scrap, and downtime.

The Cost of Downtime Caused by Quality Problems with the Raw