Which of the following is an example of internal failure costs?
A)costs incurred for the evaluation of the quality of suppliers' processes
B)costs incurred in the inspection at various stages of production
C)cost incurred for the reworking of substandard products
D)cost incurred as warranty expenses

Question

Quizplus · Accepted Answer

Internal failure costs are those incurred due to defects identified before delivery to customers. The cost incurred for the reworking of substandard products is an example of internal failure costs. Option A refers to appraisal costs, option B refers to prevention costs, and option D refers to external failure costs.

Which of the Following Is an Example of Internal Failure