Asked by Rafaiel Ghazaryan on Jun 12, 2024
Verified
External failure costs include warranty costs and managerial time handling customer complaints.
External Failure Costs
Expenses incurred when products or services fail to meet quality standards after being delivered to the customer, including warranties and returns.
Warranty Costs
Expenses incurred due to fulfilling warranty claims, including repairs, replacements, and service costs associated with guaranteeing the product's performance.
Managerial Time
The allotment and management of time by individuals in managerial positions to achieve organizational objectives effectively.
- Understand the major categories of quality cost and their impacts.
Verified Answer
BN
Bruce NgumoJun 17, 2024
Final Answer :
True
Explanation :
External failure costs are the costs incurred due to product or service not meeting customer expectations, such as warranty costs, repair costs, and time spent handling customer complaints.
Learning Objectives
- Understand the major categories of quality cost and their impacts.