Question $16(2$ points$)$

Internal failure costs include

costs of handling customer claims and product returns, handling customer

complaints, and issuing and handling product recalls

costs of disposing of defective products during production, rework, and retesting

any reworked product

costs of fire, smoke, wind, and flood damage to the company's physical plant and

office headquarters

costs of hiring consultants and training firms to help develop ways of improving

products