Which of the following does not belong to Internal Failure Costs?

Which of the following does not belong to Internal Failure Costs?

a) Rework due to Design Changes
b) Scrap due to Design Changes
c) Design Corrective Action
d) Returned Goods

Answer: d
Explanation: Rework, Scrap and Design Corrective Action fall under the category of Internal Failure Costs. Returned Goods fall under the category of External Failure Costs. Internal and External Failure Costs fall under the category of Cost of Poor Quality.

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