Customer complaint costs are an example of external failure costs.

Question

Quizplus · Accepted Answer

Customer complaint costs are incurred when a product or service fails to meet customer expectations, resulting in dissatisfaction or dissatisfaction about the quality of the product or service. These costs are considered external failures because they occur after the product or service has been delivered to the customer and can result in loss of future business or damage to the company's reputation.

Customer Complaint Costs Are an Example of External Failure Costs