Which of these choices is an example of an internal cost related to an improvement?
A)Redesign of a supply warehouse floor layout.
B)Warranties provided for a product by built by the organization.
C)A quarterly loss in sales revenue.
D)A customer complains.

Question

Quizplus · Accepted Answer

The redesign of a supply warehouse floor layout would be an example of an internal cost. The goal is to have all the costs of quality in the Appraisal and Prevention areas and zero costs of poor quality. Internal cost examples are rework, delays, redesign, shortages, failure analysis, retesting, and downtime. External cost examples are environmental costs, complaints, repairing goods and redoing services, customers' bad will, warranties, and sales losses.

Which of These Choices Is an Example of an Internal