The costs incurred when poor quality goods or services are detected and corrected before delivery to customers are called
A) appraisal costs.
B) external failure costs.
C) internal failure costs.
D) prevention costs.

Question

Quizplus · Accepted Answer

The costs incurred when poor quality goods or services are detected and corrected before delivery to customers are called internal failure costs. These costs include rework, scrap, and inspections to identify defects before they reach the customer.

The Costs Incurred When Poor Quality Goods or Services Are