Which of the following costs would be classified as an external failure cost on a quality report?
A)Reliability engineering.
B)Materials inspection.
C)Rework.
D)Warranty repairs.
E)Pilot studies/focus-group sessions.

Question

Quizplus · Accepted Answer

Warranty repairs are considered external failure costs as they occur after the product has left the company's control and are a result of the failure of the product in the hands of the customer.

Which of the Following Costs Would Be Classified as an External