Final answer:
Internal failure costs are the costs incurred when poor quality goods or services are detected and corrected after delivery to customers.
Step-by-step explanation:
The costs incurred when poor quality goods or services are detected and corrected after delivery to customers are called internal failure costs. These costs include expenses such as rework, scrap, and product return or replacement. Internal failure costs are a result of poor-quality control and can significantly impact a company's profitability and reputation.