Which of the following would be classified as an external failure cost on a quality cost report?
A) Debugging software errors.
B) Final product testing and inspection.
C) Depreciation of test equipment.
D) Liability arising from defective products.

Question

Quizplus · Accepted Answer

Liability arising from defective products is a cost that arises after the product has been delivered to the customer and is considered an external failure cost. A is considered a prevention cost, B is a appraisal cost, and C is a internal failure cost.

Which of the Following Would Be Classified as an External