Question

With respect to costs of quality, this type of cost arises when a defect is discovered in the factory and is fixed before it reaches the consumer.

a. systematic failure cost.
b. internal failure cost.
c. unsystematic failure cost.
d. external failure cost.

Answer 1

The answer is internal failure costs. These are charges that are produced by products or services that have not met the requirements or client/user needs and are found beforehand distribution of products and services to outside customers. They would have then led to the client not being pleased.