The cost associated with unplanned machine downtime,when operators halt the production line after identifying an unacceptably high rate of defective output,should be classified as:
A)a prevention cost.
B)an internal quality cost.
C)an internal failure cost.
D)a reactive failure cost.

Question

Quizplus · Accepted Answer

Unplanned machine downtime and operator shutdowns due to defective output are examples of internal failures that incur costs in terms of lost production time and potential scrapping/rework of defective units. Therefore, the associated costs should be classified as internal failure costs.

The Cost Associated with Unplanned Machine Downtime,when Operators Halt the Production