Internal Failure Costs

Cost of Quality
The total costs incurred to ensure good quality or rectify poor quality. By enhancing quality, managers can reduce costs and boost profits. These costs are categorized into prevention, appraisal, internal failure, and external failure costs.
Internal Failure Costs
Internal Failure Costs are expenses associated with defects that are detected before a product or service is delivered to the customer. They are part of the broader category known as the Cost of Quality.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.