Lower sales due to poor product performance is an example of
A)a prevention cost.
B)an internal failure cost.
C)an appraisal cost.
D)external failure costs.

Question

Quizplus · Accepted Answer

Lower sales due to poor product performance is an example of external failure costs, as these costs arise when a product fails to meet quality standards after it has been delivered to the customer, leading to returns, repairs, or lost sales.

Lower Sales Due to Poor Product Performance Is an Example