Warranty claims, customer complaints, and costs of litigation are examples of __________ costs.
A) Internal failure
B) External failure
C) Appraisal
D) Prevention
E) Replacement

Question

Quizplus · Accepted Answer

Warranty claims, customer complaints, and costs of litigation are all costs associated with failures that happen after the product has left the organization (i.e. external to the organization). These are categorized as external failure costs.

Warranty Claims, Customer Complaints, and Costs of Litigation Are Examples