In which of the four major categories of quality costs would the costs associated with scrap and rework belong?

The costs associated with scrap and rework fall under the category of internal failure costs. Internal failure costs are incurred when defects are found before the product or service is delivered to the customer. These costs include expenses related to any rework needed to correct defective products, as well as the costs associated with scrap—items that cannot be salvaged and must be discarded.

By addressing these costs, organizations can work on improving their production processes and quality management systems, ultimately leading to reduced waste and increased efficiency. Monitoring internal failure costs is vital for businesses as it allows them to pinpoint areas for improvement and avoid potential external failures, which could affect customer satisfaction and the organization's reputation.