Which of the following is NOT an external failure cost?
A)Scrap and rework costs
B)Costs due to customer complaints
C)Product recall costs
D)Product liability costs

Question

Quizplus · Accepted Answer

Scrap and rework costs are internal failure costs that occur when defective products are detected within the company's production process. External failure costs are costs incurred after the defective products have left the company and are in the hands of the customer. Choices B, C, and D are all external failure costs that are incurred when customers are dissatisfied with the product and can lead to financial and reputational damage to the company.

Which of the Following Is NOT an External Failure Cost