What would be the total internal failure cost appearing on the quality cost report?
A)$127,000
B)$217,000
C)$85,000
D)$146,000

Question

Quizplus · Accepted Answer

The total internal failure cost includes both rework cost and scrap cost. 
Looking at the table, the rework cost is $78,000 and the scrap cost is $139,000. 
Adding those two together gives a total internal failure cost of $217,000, which is option B.

What Would Be the Total Internal Failure Cost Appearing on the Quality