Which of the following is NOT an internal failure cost?
A) Production losses caused by downtime
B) Warranty costs
C) Rework costs
D) Rejected product units

Question

Quizplus · Accepted Answer

Warranty costs are considered an external failure cost, as they are incurred when a defective product is returned and have to be repaired or replaced. The other options listed (production losses caused by downtime, rework costs, and rejected product units) are all examples of internal failure costs, which are costs incurred when defects are detected before the product is shipped to the customer.

Which of the Following Is NOT an Internal Failure Cost