CLR Inc. is a clothing manufacturer. Recently, CLR made and produced about 2,000 shirts. During the production process, some of the shirts did not have the required number of buttons sewed on. CLR has decided to rework the shirts to add the buttons. These rework costs would most likely be classified as which type of quality cost?
A) Internal failure costs
B) Appraisal (detection) costs
C) Prevention costs
D) External failure costs

Question

Quizplus · Accepted Answer

Reworking the shirts to add the missing buttons is an example of internal failure costs, as it involves correcting a quality defect found within the company's own production process before the shirts are shipped to customers.

CLR Inc Is a Clothing Manufacturer