Warranty claims and adjustments are examples of
A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.

Question

Quizplus · Accepted Answer

Warranty claims and adjustments involve costs incurred due to product failures that are discovered after the product has been sold to customers. These costs fall under the category of external failure costs, which refer to the costs associated with correcting product failures that are discovered after the product has been delivered to the customer.

Warranty Claims and Adjustments Are Examples of