Question

External Failure Costs Include The Following Costs Except__________ Costs.A Product-Returnb Lost Salesc Price-Downgradingd Warranty Claims
External failure costs include the following costs except __________ costs.

a product-return

b lost sales

c price-downgrading

d warranty claims

Answer 1

Costs associated with product failures that occur after they have been sold to customers are known as external failure costs. These expenses cover the legal expenditures associated with customer lawsuits.

The expense of an external failure is an example of which of the following?

Liability claims. Warranty claims are regarded as a cost of external failure. It is a cost that the company incurs to replace and repair goods that customers have recently purchased.

What part of the external failure costs is this?

One element of the cost of quality is external failure costs, which are incurred when a subpar product is delivered to the client and malfunctions while being used. The warranty work and returns make up the majority of this expense. However, customer lawsuits could also be a possibility.

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