Josephine's T-Shirts faced a lot of complaints from customers when its recent batch of long-sleeved shirts was dispatched.The employees at Josephine's T-Shirts,hence,had to rework on the returned items,and in some cases,the company had to even replace the faulty goods.In this case,the costs incurred by Josephine's T-Shirts are an example of _____ costs.
A) prevention
B) appraisal
C) internal failure
D) external failure

Question

Quizplus · Accepted Answer

External failure costs are incurred when defects are found after the product has been delivered to the customer, leading to returns, rework, or replacements.

Josephine's T-Shirts Faced a Lot of Complaints from Customers When