In a Cost of Quality (COQ) framework, rework costs incurred before shipment of product are considered:
A) Internal failure costs.
B) Retention costs.
C) Appraisal costs.
D) Prevention costs.
E) External failure costs.

Question

Quizplus · Accepted Answer

Rework costs incurred before shipment of product are considered internal failure costs in a Cost of Quality framework. Internal failure costs are costs incurred as a result of defects being discovered before the product is shipped to the customer. Rework is a corrective action taken to fix a defect, which is why it falls under this category.

In a Cost of Quality (COQ) Framework, Rework Costs Incurred