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Examveda

Costs incur for defective products, before their shipment to customers can be categorized as

A. prevention costs

B. external failure costs

C. appraisal costs

D. internal failure costs

Answer: Option D

Solution(By Examveda Team)

Costs incur for defective products, before their shipment to customers can be categorized as internal failure costs. Internal failure costs are those costs of quality associated with product failures that are discovered before a product leaves the factory.

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