The largest COQ items are frequently those related to external failure,which comprises mainly the opportunity costs of the contribution margin and profit forgone from lost sales,lost production and lower prices resulting from poor quality.

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This statement is true. External failure costs are those that are incurred due to poor quality products being delivered to customers. These costs include lost sales, lost production, and lower prices resulting from poor quality. These costs are typically the largest component of the cost of quality.

The Largest COQ Items Are Frequently Those Related to External