Which term below best describes the quality cost category for "lost profits from lost sales"?
A)Prevention costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Question

Quizplus · Accepted Answer

"Lost profits from lost sales" refers to revenue that would have been earned if the product had not failed or if the customer had not been dissatisfied. This is a cost that occurs after the product has reached the customer, making it an external failure cost.

Which Term Below Best Describes the Quality Cost Category for "Lost