Question

External failure costs are __________. ANSWER Unselected costs caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activities Unselected costs an organization incurs to actually prevent defects from occurring to begin with Unselected costs a company incurs for assessing its quality levels Unselected costs incurred by defects that are not detected until a product or service reaches the customer Unselected I DON'T KNOW YET

Answer 1

Answer:

costs incurred by defects that are not detected until a product or service reaches the customer

Explanation:

Failure costs are costs incurred by a company due to defects in the manufactured products. They are classified as:

1. internal: failure costs that are detected before the products have been shipped, e.g. repair costs
2. external: failure costs that occur after the product has been delivered to the customers, e.g. lawsuits resulting from customers' injuries, replacement costs