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Managerial Accounting: The Corners...
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Managerial Accounting: The Corners...
Which of the following is an external failure cost?
- a. Design reviews
- b. Warranties
- c. Field testing
- d. Vendor certification
Identify the cost which can be classified as an external failure cost.
Quality Cost:
Organizations are required to bear costs due to non-conformity of goods or services with the general specifications. These costs are termed as quality costs.
b.
External failure costs are incurred by the company in relation with poor quality or defects that are discovered by the customers after the goods are shipped. Warranty cost is an external failure cost which is incurred by companies,when repair is required after delivery of the product...
Chapter 13 Solutions
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