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Distinguish the Following Costs

Question 189

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Distinguish the following costs:

Premises:
Disposal of defective products during production
Inspection of test equipment
Rework substandard products
Warranty repairs and replacements
Field testing and appraisal at customer site
Technical support provided to suppliers
Liability arising from defective products
Responses:
Appraisal costs
Prevention costs
External failure costs
Internal failure costs

Correct Answer:

Disposal of defective products during production
Inspection of test equipment
Rework substandard products
Warranty repairs and replacements
Field testing and appraisal at customer site
Technical support provided to suppliers
Liability arising from defective products
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