Which of the following best describes internal failure costs?

OPTIONS

• The economic costs associated with a catastrophic failure of an internal subsystem
• The unavoidable quality system costs associated with the production of any product or service
• The opposite of external failure costs
• The costs resulting from a nonconformance detected before a product or service is provided

ANSWER

The costs resulting from a nonconformance detected before a product or service is provided

EXPLANATION

The non-conformance costs are related to processes which don’t match customer expectations and hence related to internal failure costs.