Asked by Alexander Orton on Apr 27, 2024
Verified
Processing returned merchandise
A)Prevention cost
B)Appraisal cost
C)Internal failure cost
D)External failure cost
External Failure Cost
External failure costs are expenses incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.
- Acquire the understanding and put into practice the principles related to costs resulting from failures inside and outside the organization.
- Acquire insight into the effect of quality cost classifications on the operational productivity.
Verified Answer
AT
Learning Objectives
- Acquire the understanding and put into practice the principles related to costs resulting from failures inside and outside the organization.
- Acquire insight into the effect of quality cost classifications on the operational productivity.