In response to an unexpected increase in the number of defective units detected prior to packaging for shipment, Décor Cabinet Company has recently been forced to substantially increase the number of completed units subjected to a quality control inspection. The increased cost of inspection best illustrates:
A) Internal product quality failure.
B) External product quality failure.
C) Unfavorable product cost variances.
D) A failure to reach target cost during the establishment phase.

Question

Quizplus · Accepted Answer

The increased cost of inspection due to a rise in defective units before packaging indicates internal product quality failure, as it reflects issues within the production process that are identified before the product reaches the customer.

In Response to an Unexpected Increase in the Number of Defective