Defective material from suppliers and lost production time are examples of:
A)internal failure costs.
B)external failure costs.
C)appraisal costs.
D)prevention costs.
E)replacement costs.

Question

Quizplus · Accepted Answer

Defective material from suppliers and lost production time are examples of internal failure costs, which refer to the costs incurred due to defects and errors found before delivering the product or service to the customer. These costs include rework, scrap, inspections, and downtime.

Defective Material from Suppliers and Lost Production Time Are Examples