Question

situation: flavio's organic construction company built a commercial building of entirely plant-based materials. unfortunately, the final inspection found serious problems with the building's plumbing, and extensive non-plant-based renovations were required before the building could be sold to a customer. according to the cost of poor quality, what category does this cost belong to?

Answer 1

According to the cost of poor quality, this cost belongs to Internal failure cost which is associated with product failures.

What is Internal failure costs?

Internal failure costs are quality expenses related to product defects found before a product leaves the facility. The firm's internal inspection procedures help identify these shortcomings. Failure analysis activities, product rework expenses, product scrapped, and throughput lost are a few examples of internal failure costs. Internal failure costs result from defects found prior to delivery. These cover all expenses incurred as a result of failing to satisfy both internal and external consumers.

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