When errors have been made while producing a product such that the item must be discarded, the resultant cost is called a(n):
A) warranty.
B) scrap cost.
C) rework cost.
D) external failure cost.

Question

Quizplus · Accepted Answer

Scrap cost refers to the cost incurred when a product has to be discarded due to errors during production. The other options - warranty, rework cost, and external failure cost - refer to costs incurred due to errors that are discovered after the product has been sold, and do not apply to the situation described in the question.

When Errors Have Been Made While Producing a Product Such