FMI is a car manufacturer. Recently, they have had to recall approximately 6,000 cars due to potential brake pad malfunction. The costs to inspect and replace the brake pads would most likely be classified as which type of quality cost?
A) Appraisal (detection) costs
B) External failure costs
C) Internal failure costs
D) Prevention costs

Question

Quizplus · Accepted Answer

External failure costs are incurred when defects are found after the product has been delivered to the customer, such as the costs associated with recalling and repairing cars.

FMI Is a Car Manufacturer