Within a Cost-of-Quality (COQ) system, product liability resulting from a legal action is classified as a(n):
A) Internal failure cost.
B) External failure cost.
C) Legal cost.
D) Administrative expense.
E) Manufacturing overhead cost.

Question

Quizplus · Accepted Answer

Product liability resulting from a legal action is considered an external failure cost within a COQ system. This cost arises when a company's product fails to meet specifications or standards, resulting in harm or injury to the end user, leading to legal action against the company.

Within a Cost-Of-Quality (COQ) System, Product Liability Resulting from a Legal