In a Cost of Quality (COQ) reporting framework, scrap costs because of a quality failure would be classified as:
A) Prevention costs.
B) Salvage costs.
C) Appraisal costs.
D) Internal failure costs.
E) External failure costs.

Question

Quizplus · Accepted Answer

Scrap costs due to a quality failure would be classified as internal failure costs in a Cost of Quality (COQ) reporting framework. Internal failure costs are the costs incurred as a result of production failure or defects within the organization which are detected before products reach to customers such as scrap and rework costs.

In a Cost of Quality (COQ) Reporting Framework, Scrap Costs