Recalls are fairly common events for automobile manufacturers.The costs of recalling and repairing a car create
$\begin{array}{ll}
\underline{\text { Assets available for use} } & \underline{ \text {external falure costs } }&\underline{\text { parevention costs }} \
\end{array}$
A)yes yes no
B)yes yes yes
C)no yes no
D)yes no yes

Question

Quizplus · Accepted Answer

Recalls reduce the assets available for use by the manufacturer due to the costs involved in the recall and repair process, and they are considered external failure costs because they occur after the product has been delivered to the customer. However, they are not prevention costs, as prevention costs are incurred to avoid defects before the product is delivered.

Recalls Are Fairly Common Events for Automobile Manufacturers A)yes Yes No B)yes Yes Yes C)no Yes No D)yes

Recalls Are Fairly Common Events for Automobile Manufacturers A)yes Yes No
B)yes Yes Yes
C)no Yes No
D)yes