The lost profits from lost customers are an example of:
A)prevention costs.
B)internal failure costs.
C)appraisal costs.
D)external failure costs.

Question

Quizplus · Accepted Answer

The lost profits from lost customers are a consequence of external failure costs, which refer to the costs that arise after the service or product has been delivered and fail to meet customer requirements or expectations. These costs include expenses like refunds, rework, warranty claims, and lost sales due to negative word-of-mouth or damage to reputation.

The Lost Profits from Lost Customers Are an Example Of