Internal failure occurs when a problem is detected before a defective product is shipped to a customer. Product testing may be done before a new product enters into production, so that would be part of the product design cost. Product design is a prevention cost, because flaws in design become defective products. Quality design and testing prevent defective products from ever being produced. Product testing might also be considered an appraisal cost, if it refers to testing or inspecting the finished product at the completion of production. Both prevention costs and appraisal costs are conformance costs, whereas internal failure costs are nonconformance costs.
Internal failure occurs when a problem is detected before a defective product is shipped to a customer. Warranty repair costs are costs to correct a defect after the customer has received the product, so they are externala failure costs.
Internal failure occurs when a problem is detected before a defective product is shipped to a customer. Reworking defective units is done when they are found to be defective before they are sold or shipped, so the cost of rework is an internal failure cost.
Internal failure occurs when a problem is detected before a defective product is shipped to a customer. Inspection of units must occur before a problem can be detected. The cost to inspect units produced is an appraisal cost, which is a cost incurred in order to determine if an individual unit is defective.
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