Q42
Cost incur for defective products, after their shipment to customers is classified as
A.
prevention costs
B.
external failure costs
AnswerC.
appraisal costs
D.
internal failure costs
Answer: Option B
Solution
Answer: Option B
Solution:
Cost incur for defective products, after their shipment to customers is classified as external failure costs. External failure costs are those costs incurred due to product failures after they have been sold to customers.