Chapter 19, Problem 19.16MCQ

Rector Corporation is examining its quality control program. Which of the following statements is/are correct.

1. I. Rework costs should be regarded as a cost of quality when the rework is caused by internal failure.
2. II. Prevention costs are costs that are incurred to prevent the sale and production of defective units.
3. III. Internal failure costs are costs of failure of machinery on the production line.
4. 1. I, II, and III are correct.
5. 2. II only is correct.
6. 3. I and III only are correct.
7. 4. I only is correct.