Question

question 4
4 pts
which of the following is a prime example of an internal quality failure cost?
the material cost of a piece of metal that had too large a hole drilled in it
the labor cost associated with inspecting every item produced
the labor cost associated with repairing an item returned under warranty
the material cost of the paint applied to the case of a finished unit
the labor cost associated with employee training on quality standards

Explanation:

Internal quality - failure costs occur when a defect is discovered before the product reaches the customer. A piece of metal with a too - large hole drilled in it is a defective item found during production, incurring material cost as a result of the failure. Inspection cost is a prevention or appraisal cost. Repairing a returned item is an external failure cost. Paint cost for a finished unit is a normal production cost. Employee training cost is a prevention cost.

Answer:

The material cost of a piece of metal that had too large a hole drilled in it