Which statement is true concerning external failure costs?

Question

Quizplus · Accepted Answer

External failure costs are incurred when customers receive nonconforming products or services and are often associated with warranty claims, returns, and repairs. These costs are considered "external" because they occur after the product or service has been delivered to the customer. They can damage the company's reputation and result in lost sales and customer loyalty, making external failure costs a critical factor in quality management.

Which Statement Is True Concerning External Failure Costs