Which of the following would be classified as an internal failure cost on a quality cost report?

A) Rework labor and overhead.
B) Cost of field servicing and handling complaints.
C) Technical support provided to suppliers.
D) Lost sales arising from a reputation for poor quality.

Internal Failure Cost

Costs associated with defects found before the product is delivered to the customer, including scrap and rework.

Quality Cost Report

A document that outlines the costs associated with preventing, detecting, and correcting defective work, categorized into prevention costs, appraisal costs, and failure costs.

Rework Labor

The labor required to correct defective products or errors in production, not initially planned for in the manufacturing process.