CAPM (Certified Associate in Project Management) Practice Exam

What are the two types of costs of nonconformance?

1. Annual and monthly

2. Production and sales

3. Internal failure and external failure

4. Research and development

The correct answer is: Internal failure and external failure

The correct answer is C: Internal failure and external failure. Internal failure costs refer to the costs incurred when defects are identified before the product or service is delivered to the customer. These costs include rework, scrap, and additional resources needed to fix the defects. External failure costs, on the other hand, are incurred when defects are identified after the product or service has been delivered to the customer. These costs may include warranty claims, product recalls, and potential damage to the organization's reputation. Option A (Annual and monthly) is incorrect as it does not represent the types of costs of nonconformance in project management. Option B (Production and sales) is incorrect as it does not relate to the costs of nonconformance but rather different operational aspects of a business. Option D (Research and development) is also incorrect as it does not pertain to the types of costs associated with nonconformance in project management.