Difference between revisions of "Internal failure costs"
| Line 5: | Line 5: | ||
:[[Internal failure costs]]. Losses that occur while the product is in possession of the producer, including rework and scrap costs. | :[[Internal failure costs]]. Losses that occur while the product is in possession of the producer, including rework and scrap costs. | ||
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| − | [[Internal failure costs]]. Costs incurred on defective products before they are shipped to customers. | + | :[[Internal failure costs]]. Costs incurred on defective products before they are shipped to customers. |
[[Category: Quality Management]][[Category: Articles]][[Category: Accounting]] | [[Category: Quality Management]][[Category: Articles]][[Category: Accounting]] | ||
Revision as of 15:56, 11 July 2020
Internal failure costs are losses that occur while the product is in possession of the producer, including rework and scrap costs.
Definition
According to Managing Quality by Foster (6th edition),
- Internal failure costs. Losses that occur while the product is in possession of the producer, including rework and scrap costs.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Internal failure costs. Costs incurred on defective products before they are shipped to customers.
