Final answer:
The cost of failure to control quality includes warranty charges, returned materials, scrap, rework, and spoilage.
Step-by-step explanation:
The cost of failure to control quality includes all of the following:
- Warranty charges: When a product fails to meet quality standards, customers may need to use their warranties to get it repaired or replaced, which costs the company money.
- Returned materials: If a product is defective, customers may return it to the company, resulting in additional costs for handling and processing the returned materials.
- Scrap, rework, and spoilage: Poor quality products may need to be scrapped, reworked, or have additional resources invested to correct the defects, leading to wasted materials, time, and labor costs.