Which of the following would be classified as an external failure cost on a quality cost report?

A) Final product testing and inspection.
B) Disposal of defective products.
C) Supervision of testing and inspection activities.
D) Cost of field servicing and handling complaints.

External Failure Cost

Costs incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document that details the costs associated with ensuring product quality, including prevention, appraisal, and failure costs.

Field Servicing

The process of providing maintenance, repair, or support services for products or equipment at the customer's location.