IT Certification Exams

The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a

The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a (n):

A. Training cost.
B. External failure cost.

C. Internal failure cost.

D. Prevention cost.

Explanation:
Internal failure costs are incurred when detection of defective products occurs before shipment. Examples of internal failure costs are scrap, rework, tooling changes, and downtime.