Asked by Brian Doherty on Jul 28, 2024
Verified
Which of the following would be classified as an internal failure cost on a quality cost report?
A) Final product testing and inspection.
B) Warranty repairs and replacements.
C) Depreciation of test equipment.
D) Debugging software errors.
Internal Failure Cost
Costs associated with defects found before a product reaches the customer, including scrap and rework expenses.
Quality Cost Report
A document or tool that tracks the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.
Warranty Repairs
Services offered by manufacturers or retailers to repair, replace, or rectify defects in products within a specified period after purchase, at no cost to the customer.
- Identify specific examples of internal failure costs in quality management.
Verified Answer
LR
Lauren RodriguezJul 30, 2024
Final Answer :
D
Explanation :
Debugging software errors is an internal failure cost as it occurs within the organization's processes and is a cost of correcting defects before the product reaches the customer. Final product testing and inspection would be classified as a prevention cost as it is a cost incurred to prevent defects. Warranty repairs and replacements would be classified as an external failure cost as it is a cost incurred to correct defects discovered after the product has been delivered to the customer. Depreciation of test equipment would be classified as an appraisal cost as it is a cost incurred to evaluate the conformance of products to quality standards.
Learning Objectives
- Identify specific examples of internal failure costs in quality management.