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What are examples of costs of internal failure?
Failures found by the customers
Failures found by the project
Costs due to an increase in lawsuits
Costs from the purchase of new equipment
The correct answer is: Failures found by the project
Costs of internal failure refer to the costs incurred due to failures found within the project. These costs often include rework, scrap, and downtime. When failures are identified within the project before the final delivery to the customer, it impacts the project schedule, budget, and quality. Therefore, option B, "Failures found by the project," is the correct answer as it directly relates to costs of internal failure. On the other hand: A. Failures found by the customers: These are costs of external failure, not internal failure. C. Costs due to an increase in lawsuits: This usually refers to legal costs and is not directly related to internal project failures. D. Costs from the purchase of new equipment: While this could be a cost incurred during a project, it does not specifically relate to internal failures.