External failure costs include all of the following costs except those related to:
A) Lost sales and lost customers.
B) Warranty obligations.
C) Product liability suits.
D) Product field testing.

Question

Quizplus · Accepted Answer

External failure costs are those incurred after a defective product has been delivered to the customer, including costs related to lost sales, warranty obligations, and product liability suits. Product field testing, however, is a part of appraisal costs, which are incurred to detect defects before products are shipped to customers.

External Failure Costs Include All of the Following Costs Except