External failure costs are costs incurred on defective products after they have been shipped to customers.

Name: External failure costs are costs incurred on defective products after they have been shipped to customers.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

External failure costs include costs of product returns, warranty claims, customer complaints, product recalls, legal actions, and lost sales due to damaged reputation. They occur after the products have left the organization and can be a significant financial burden on the company.

External Failure Costs Are Costs Incurred on Defective Products After