External failure costs include:
A) Inspections of materials.
B) Training.
C) Rework.
D) Warranty costs.

Question

Quizplus · Accepted Answer

External failure costs refer to costs incurred when a product or service fails after it has been delivered to the customer. This includes warranty costs, such as repairs, replacements, or refunds to customers. The other options (inspections of materials, training, and rework) are examples of prevention or appraisal costs, which are incurred to prevent or detect defects before they occur or are delivered to the customer.

External Failure Costs Include