The costs incurred when poor quality goods or services are detected and corrected before delivery to customers are called:

Question

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Internal failure costs are incurred when poor quality goods or services are detected and corrected before delivery to customers. These costs include scrap, rework, and downtime. Preventive costs are incurred to prevent quality problems before they occur, appraisal costs are incurred to detect quality problems after they occur, and external failure costs are incurred when poor quality goods or services are delivered to customers.

The Costs Incurred When Poor Quality Goods or Services Are