Inspection costs for reworked units would be classified, for Cost of Quality (COQ) reporting purposes, as:
A) Prevention costs.
B) Retention costs.
C) Appraisal costs.
D) Internal failure costs.
E) External failure costs.

Question

Quizplus · Accepted Answer

Inspection costs for reworked units are incurred after a defect has been identified and the unit has already failed to meet quality standards. Therefore, this cost would be classified as an internal failure cost under Cost of Quality (COQ) reporting purposes.

Inspection Costs for Reworked Units Would Be Classified, for Cost