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Which of the following is an example of an internal failure cost? Net cost of scrap Cost of warranty repairs Liability arising from defective products

Which of the following is an example of an internal failure cost?

  • Net cost of scrap

  • Cost of warranty repairs

  • Liability arising from defective products

  • Maintenance of test equipment

Knowledge Check 02

Which of the following is an example of an external failure cost?

  • Product recalls

  • Net cost of spoilage

  • Disposal of defective products

  • Downtime caused by quality problems

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