Which of the following is an internal failure cost?
A) Costs to rework defective units
B) Warranty replacement costs
C) Engineering and design costs
D) Depreciation on testing equipment

Question

Quizplus · Accepted Answer

Internal failure costs are costs incurred by a company to correct defects in products before they are shipped to customers. Costs to rework defective units are an example of internal failure costs. Warranty replacement costs, engineering and design costs, and depreciation on testing equipment are examples of other types of costs.

Which of the Following Is an Internal Failure Cost