Which of the following would be classified as an external failure cost on a quality cost report?
A) Repairs and replacements beyond the warranty period.
B) Technical support provided to suppliers.
C) Quality improvement projects.
D) Rework labor and overhead.

Question

Quizplus · Accepted Answer

External failure costs are costs incurred after the product or service has already been delivered to the customer or end user. Repairs and replacements beyond the warranty period would fall under this category, as they are a result of a failure to meet quality standards and satisfy the customer's needs. Technical support provided to suppliers is not a failure cost, but rather a prevention or appraisal cost. Quality improvement projects are prevention costs, and rework labor and overhead are internal failure costs.

Which of the Following Would Be Classified as an External