Which of the following items is considered an external failure cost?
A) Warranty cost
B) Incoming inspection
C) Prevention cost
D) Appraisal cost

Question

Quizplus · Accepted Answer

Warranty cost is incurred after a product has been sold and is considered an external failure cost, as it represents the cost of fixing problems or defects discovered by customers. Incoming inspection is a form of appraisal cost, prevention cost is incurred to prevent defects from occurring in the first place.

Which of the Following Items Is Considered an External Failure