Schedule of Activity Costs
-Which of the following is not an external failure cost?
A)warranty work
B)processing returned merchandise
C)rework
D)correcting invoice errors

Question

Schedule of Activity Costs  ​
-Which of the following is not an external failure cost?
A)warranty work 
B)processing returned merchandise 
C)rework 
D)correcting invoice errors

Quizplus · Accepted Answer

External failure costs are those incurred after the product has reached the customer. Rework is an internal failure cost, as it involves fixing defects before the product is shipped to the customer.

Schedule of Activity Costs ​

Schedule of Activity Costs