Rework costs are a form of _____cost.
A)prevention
B)appraisal
C)internal failure
D)external failure

Question

Quizplus · Accepted Answer

Rework costs are incurred when a product or service fails to meet the quality standards and has to be reworked before it can be delivered to the customer. This is an example of internal failure cost, as the failure is detected before the product reaches the customer but still requires additional resources to correct. Prevention costs are incurred to avoid defects before they occur, appraisal costs are incurred to detect defects, and external failure costs are incurred when a defective product reaches the customer.

Rework Costs Are a Form of _____Cost