Which of the following is an example of a cost item that should be classified as an external failure cost?
A)Tooling changes
B)Cost of a lost unit
C)Warranty claims
D)Cost to redesign product

Question

Quizplus · Accepted Answer

Warranty claims are an external failure cost as they occur after the product has been sold and delivered to the customer, and the customer experiences a problem or defect with the product.

Which of the Following Is an Example of a Cost