The cost to rework a defective product before it is shipped out from the factory would be classified as which cost of quality category?
A)Prevention costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Question

Quizplus · Accepted Answer

Internal failure costs are the costs associated with defective products that are found and corrected before they are shipped out to customers. This can include reworking defective products, scrap and rework costs, and the cost of lost labor and materials. Prevention costs are costs incurred to prevent defects from occurring in the first place, such as training and process improvement initiatives. Appraisal costs are costs associated with inspecting products to ensure they meet quality standards. External failure costs are costs associated with defective products that are shipped to customers, such as warranty claims and product recalls.

The Cost to Rework a Defective Product Before It Is