Which of the following would be classified as an internal failure cost on a quality cost report?
A)Supplies used in testing and inspection.
B)Final product testing and inspection.
C)Net cost of scrap.
D)Depreciation of test equipment.

Question

Quizplus · Accepted Answer

The net cost of scrap would be classified as an internal failure cost as it represents the cost of products or materials that did not meet quality standards and had to be scrapped or reworked internally. The other options listed could be classified as prevention or appraisal costs (A and B) or as a maintenance cost (D).

Which of the Following Would Be Classified as an Internal