What costs are incurred when products and services do NOT conform to either specifications or customer needs prior to being delivered?
A) appraisal costs
B) prevention costs
C) internal failure costs
D) external failure costs

Question

Quizplus · Accepted Answer

Internal failure costs are incurred when products or services fail to meet quality standards before they are delivered to customers. These costs include scrap, rework, and downtime.

What Costs Are Incurred When Products and Services Do NOT