Schedule of Activity Costs From the above schedule of activity costs, determine the internal failure costs.
A) $37,000
B) $25,000
C) $8,000
D) $33,000

Question

Schedule of Activity Costs  From the above schedule of activity costs, determine the internal failure costs.
A) $37,000 
B) $25,000 
C) $8,000 
D) $33,000

Quizplus · Accepted Answer

Internal failure costs are costs incurred as a result of defects found before the product is delivered to the customer. In the given schedule, activities related to inspection, testing, and rework are associated with internal failure costs. Adding up the costs of these activities, we get $33,000, which is the internal failure cost.

Schedule of Activity Costs from the Above Schedule of Activity