External failure costs are costs that:
A)are incurred to prevent quality problems from occurring in the first place.
B)are incurred to identify defective products before products are shipped to the customer.
C)result from defects that are caught before the product is shipped to the customer.
D)occur when a defective product makes its way into the hands of the customer.

Question

Quizplus · Accepted Answer

External failure costs occur when a defective product makes its way into the hands of the customer. These costs include refunds, returns, warranties, and customer service related to the product defect.

External Failure Costs Are Costs That