Which of the following would be classified as an external failure cost on a quality cost report?
A) Depreciation of test equipment.
B) Repairs and replacements beyond the warranty period.
C) Supplies used in testing and inspection.
D) Re-entering data because of keying errors.

Question

Quizplus · Accepted Answer

Repairs and replacements beyond the warranty period are costs incurred due to products that failed after they have been sold to customers, making it an external failure cost. A- Depreciation of test equipment is a cost of doing business and is not related to the quality of a product. C- Supplies used in testing and inspection are considered prevention costs, as they are used to prevent defects. D- Re-entering data due to keying errors is considered an internal failure cost as it is a result of mistakes made during the production process.

Which of the Following Would Be Classified as an External