Within a COQ system,product liability resulting from a legal action is 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 an example of an external failure cost, as it occurs after the product has been delivered to the customer and can result in legal expenses, settlements, or damage to the company's reputation.

Within a COQ System,product Liability Resulting from a Legal Action