If a company consistently produces and sells defective products, which type of quality cost is likely to be the most costly in the long-run?
A) Appraisal (detection) costs
B) External failure costs
C) Internal failure costs
D) Prevention costs

Question

Quizplus · Accepted Answer

External failure costs tend to be the most costly in the long run when a company consistently produces and sells defective products. These costs include warranties, returns, lost sales, and damaged reputation, which can significantly impact a company's financial health and brand image over time.

If a Company Consistently Produces and Sells Defective Products, Which