______ failure costs include scrap, rework, and downtime.
A) External
B) Internal
C) Process
D) System

Question

______ failure costs include scrap, rework, and downtime. 
A) External
B) Internal
C) Process
D) System

Quizplus · Accepted Answer

Internal failure costs are those that occur before the product is delivered to the customer. This includes costs such as scrap, rework, and downtime, which are caused by defects in the production process. External failure costs, on the other hand, occur after the product has been delivered to the customer and include costs such as recalls, warranty claims, and customer complaints. Process and system costs are more general categories that can include both internal and external failure costs.

______ Failure Costs Include Scrap, Rework, and Downtime