The cost Ford Motor Corporation incurred to recall its one-year-old Windstar vans in order to replace a faulty relay switch is an example of:

Question

Quizplus · Accepted Answer

The cost incurred to recall the Windstar vans is an external failure cost because it was caused by a defect in the product that was discovered after it was sold to customers, resulting in potential harm or inconvenience to them.

The Cost Ford Motor Corporation Incurred to Recall Its One-Year-Old