Which of the following would be classified as an external failure cost on a quality cost report?
A) Final product testing and inspection.
B) Disposal of defective products.
C) Supervision of testing and inspection activities.
D) Cost of field servicing and handling complaints.

Question

Quizplus · Accepted Answer

External failure costs are those incurred after the product has been delivered to the customer. The cost of field servicing and handling complaints falls into this category, as it involves addressing issues and failures that occur outside the organization, after the product is in use by the customer.

Which of the Following Would Be Classified as an External