Situation: Flavio’s Organic Construction Company built a commercial building of entirely plant-based materials. Unfortunately, the final inspection found serious problems with the building’s plumbing, and extensive non-plant-based renovations were required before the building could be sold to a customer. According to The Cost of Poor Quality, what category does this cost belong to?

  • Internal failure
  • External failure
  • Appraisal
  • Prevention

The correct answer is:

  • Internal failure.

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