Asked by jeremiah coleman on Jul 19, 2024

verifed

Verified

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

A) Rework labor and overhead.
B) Technical support provided to suppliers.
C) Quality improvement projects.
D) Systems development.

Internal Failure Cost

Expenses incurred when a product fails to reach quality standards before it is delivered to the customer, including scrap and rework costs.

Quality Cost Report

A financial report detailing the costs associated with ensuring products meet quality standards, including prevention, appraisal, and failure costs.

Rework Labor

The effort and cost associated with correcting defective goods or services after they have been produced.

  • Specify certain examples of internal failure costs inherent in quality management systems.
verifed

Verified Answer

LC
Lauryn ClinkscalesJul 20, 2024
Final Answer :
A
Explanation :
Rework labor and overhead is a direct cost incurred due to internal failure of quality. The other options do not deal with internal failure costs. Technical support provided to suppliers is an external cost; quality improvement projects and systems development are prevention costs.