Question

In a Cost of Quality (COQ) framework, warranty costs are properly classified as:

A. Prevention costs.
B. Retention costs.
C. Appraisal costs.
D. Internal failure costs.
E. External failure costs

Answer 1

In a Cost of Quality (COQ) framework, warranty costs are properly classified as E) external failure costs.

Step-by-step explanation:

In a Cost of Quality (COQ) framework, warranty costs are properly classified as external failure costs.

External failure costs are costs incurred by a company due to product failures that occur after the product has been delivered to customers. These costs include warranty repairs, customer complaints, and product recalls.

In the given context, warranty costs are considered external failure costs because they are incurred when a product fails to meet customer expectations and needs to be repaired or replaced under warranty.