Which of the following would be classified as an external failure cost on a quality cost report?
A) Quality training.
B) Liability arising from defective products.
C) Test and inspection of incoming materials.
D) Quality engineering.

Question

Quizplus · Accepted Answer

Liability arising from defective products is an external failure cost, as it incurs costs after the product has been sold and reaches the customer.

Which of the Following Would Be Classified as an External