Which of the following is an example of a nonfinancial internal failure quality cost?
A) Decreasing gross profit margins over time.
B) Foregone contribution margin on lost sales.
C) Defective units shipped to customers.
D) Excessive time to convert raw materials into finished goods.

Question

Quizplus · Accepted Answer

Excessive time to convert raw materials into finished goods is a nonfinancial internal failure cost as it reflects inefficiencies in the production process that do not directly involve financial transactions.

Which of the Following Is an Example of a Nonfinancial