The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.
-Lost sales arising from a reputation for poor quality
A) Appraisal
B) External failure
C) Internal failure
D) Prevention

Question

Quizplus · Accepted Answer

Lost sales arising from a reputation for poor quality are considered external failure costs because they occur after the product has been delivered to the customer and result from failing to meet quality standards, impacting the company's reputation and sales.

The Door Company Manufactures Doors