Asked by Massiel Toribio Peralta on Jun 17, 2024
Verified
Which of the following would be classified as an external failure cost on a quality cost report?
A) Reentering data because of keying errors.
B) Customer returns arising from quality problems.
C) Test and inspection of in-process goods.
D) Rework labor and overhead.
External Failure Cost
Expenses related to product or service failures detected by the customer, including returns, repairs, and warranty claims.
Quality Cost Report
A detailed breakdown of all costs related to ensuring the quality of products, including prevention, appraisal, and failure costs.
Customer Returns
Merchandise that has been sold and later returned by the customer.
- Detail the various kinds of costs associated with ensuring quality, including prevention, appraisal, internal failure, and external failure costs.
Verified Answer
Learning Objectives
- Detail the various kinds of costs associated with ensuring quality, including prevention, appraisal, internal failure, and external failure costs.
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