Internal Failure Cost Definition:

Internal failure costs are those costs that are incurred as a result of identifying defective products before they are shipped to customers.

Other Related Accounting Articles:

• Quality Costs Definition
• Appraisal Cost Definition
• External Failure Cost Definition
• Quality Cost Report Definition
• Warranty
• High-Low Method
• Joint Product Cost Definition
• Second Stage Allocation Definition
• Relationship Banking
• Expense Allocation