Warranty service, processing of complaints, and costs of litigation are examples of
A)internal failure costs.
B)external failure costs.
C)appraisal costs.
D)prevention costs.
E)replacement costs.

Question

Quizplus · Accepted Answer

These are examples of external failure costs, which are incurred when products or services fail to meet quality standards after being delivered to the customer, leading to warranty service, complaints, and litigation.

Warranty Service, Processing of Complaints, and Costs of Litigation Are