Companies spend the most money on external failure costs as part of quality control because this is done to fix defective products and satisfy customers.

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Companies actually spend the most money on internal failure costs as part of quality control, which includes the cost of detecting and rejecting defective products before they leave the factory. External failure costs come second, and include the cost of fixing defects after they have been shipped to customers, handling customer complaints, and replacing or refunding products.

Companies Spend the Most Money on External Failure Costs as Part