The lost profits from lost customers are an example of
A) prevention costs.
B) internal failure costs.
C) appraisal costs.
D) external failure costs.

Question

Quizplus · Accepted Answer

The lost profits from lost customers are a result of external failure costs, which occur due to defects in the product or service that lead to dissatisfied customers or lost sales. These costs occur outside of the company and can have a significant impact on the organization's reputation and financial performance.

The Lost Profits from Lost Customers Are an Example of