Answered: The cost of lost future sales after a…

The cost of lost future sales after a customer finds a defect in a product is which type of quality cost? a. Prevention cost b. Appraisal cost c. Internal failure cost d. External failure cost

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 2CMA

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Question

The cost of lost future sales after a customer finds a defect in a product is which type of quality cost?

a. Prevention cost

b. Appraisal cost

c. Internal failure cost

d. External failure cost

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