Final answer:
The cost of poor quality encompasses internal and external failure costs, appraisal costs, and prevention costs, but not proceeds from the sale of scrap, which is a way to recover costs rather than a cost itself.
Step-by-step explanation:
The cost of poor quality includes expenses that are the direct result of defects in products. These costs are often categorized into internal failure costs, external failure costs, appraisal costs, and prevention costs. The options provided are examples of these costs, with the exception of one.
- Cost of rework (internal failure cost): This is the cost of fixing defective products before they reach the customer.
- Warranty claims (external failure cost): These costs arise when customers encounter defects after the products have been sold, leading to warranty repairs or replacements.
- Scheduling delays: These can be considered as part of the internal failure costs as they often result from needing to correct defects, though they are more indirect.
- Proceeds from the sale of scrap: This is not a cost but rather a potential recovery of cost, and therefore it is not included in the cost of poor quality.
Given these definitions, the correct answer is that 'proceeds from the sale of scrap' do not belong in the cost of poor quality list. This is because while the cost of poor quality encompasses various types of expenses linked to not meeting quality standards, the sale of scrap typically helps to offset some of these costs rather than contributing to them.