Which term listed below describes costs incurred when the company detects poor quality goods or services before delivery to the customer?
A)Internal failure costs
B)Value added activity
C)Lean production
D)External failure costs

Question

Quizplus · Accepted Answer

Internal failure costs are costs incurred when a company detects poor quality goods or services before delivery to the customer. These costs include scrap, rework, and inspection.

Which Term Listed Below Describes Costs Incurred When the Company