Question

Warranty service, processing of complaints, and costs of litigation are examples of Multiple Choice appraisal costs. internal failure costs. external failure costs. replacement costs. prevention costs.

Answer 1

Examples of internal failure costs include warranty service and complaint handling. As a result, choice b is accurate.

What do you mean by internal failure cost?

Internal failure costs are expenses related to flaws discovered prior to the client receiving the good or service. External failure costs are expenses related to flaws discovered after the client has purchased the good or service.

Internal failure costs are quality expenses related to product flaws found before a product leaves the facility.

Hence, warranty services all are examples of the internal failure cost.

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