Warranty costs is an example of external failure costs.

Name: Warranty costs is an example of external failure costs.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

Warranty costs are incurred after the product has been sold and delivered to the customer, which indicates a failure of the product in the market. Hence, it is an example of external failure costs, which are costs incurred due to failures found by external customers after delivery.

Warranty Costs Is an Example of External Failure Costs