Which of the following would be classified as an external failure cost on a quality cost report?
A)Product recalls.
B)Quality engineering.
C)Quality training.
D)Systems development.

Question

Quizplus · Accepted Answer

Product recalls are considered an external failure cost because they occur after the product has been delivered to the customer, and the cost of the recall is likely to be borne by the company rather than the customer. Quality engineering, quality training, and systems development are all considered prevention or appraisal costs that are incurred before the product is delivered.

Which of the Following Would Be Classified as an External