Scrap and rework are examples of
A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.

Question

Quizplus · Accepted Answer

Scrap and rework are both examples of internal failure costs, as they are costs incurred due to defects or errors in the production process that result in the need for additional work or materials. Prevention costs are costs incurred to prevent defects from occurring in the first place, appraisal costs are costs incurred to evaluate a product or service, and external failure costs are costs incurred as a result of defects or errors that are discovered after the product has been delivered to the customer.

Scrap and Rework Are Examples of