The cost of a product liability claim can be classified as a(n)
A)prevention cost.
B)inspection cost.
C)internal failure cost.
D)external failure cost.

Question

Quizplus · Accepted Answer

The cost of a product liability claim is considered an external failure cost because it occurs after the product has left the company's control and reaches the consumer, resulting in harm or injury.

The Cost of a Product Liability Claim Can Be Classified