Asked by Ghefhine Casilao on Jul 04, 2024
Verified
Which of the following would not be considered as an internal failure cost
A) Quality training.
B) Scrap costs.
C) Investigation of cause of failure.
D) Rework costs.
Internal Failure Cost
Costs incurred due to defects that are identified before the products are shipped to customers, including scrap and rework costs.
Quality Training
Educational programs and initiatives focused on improving the quality of products, services, and processes within an organization, often aimed at enhancing customer satisfaction.
Scrap Costs
Expenses associated with the disposal of waste materials or byproducts produced during the manufacturing process.
- Differentiate between the costs associated with prevention and those arising from internal failures, and understand their significance in managing expenses.
Verified Answer
SM
Sabrina MarieJul 10, 2024
Final Answer :
A
Explanation :
Quality training is an investment in preventing internal failure costs and improving overall quality, and is therefore not considered an internal failure cost itself. Scrap costs, investigation of cause of failure, and rework costs are all examples of internal failure costs.
Learning Objectives
- Differentiate between the costs associated with prevention and those arising from internal failures, and understand their significance in managing expenses.