Difference between revisions of "External failure costs"
(Created page with "External failure costs are monetary losses associated with product failures after the customer has possession of the product. They may include warranty or field repair cos...") |
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According to [[Managing Quality by Foster (6th edition)]], | According to [[Managing Quality by Foster (6th edition)]], | ||
:[[External failure costs]]. Monetary losses associated with product failures after the customer has possession of the product. They may include warranty or field repair costs. | :[[External failure costs]]. Monetary losses associated with product failures after the customer has possession of the product. They may include warranty or field repair costs. | ||
| + | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| + | :[[External failure costs]]. Costs incurred on defective products after they are shipped to customers. | ||
| − | [[Category: Quality Management]][[Category: Articles]] | + | [[Category: Quality Management]][[Category: Articles]][[Category: Accounting]] |
Revision as of 12:34, 10 July 2020
External failure costs are monetary losses associated with product failures after the customer has possession of the product. They may include warranty or field repair costs.
Definition
According to Managing Quality by Foster (6th edition),
- External failure costs. Monetary losses associated with product failures after the customer has possession of the product. They may include warranty or field repair costs.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- External failure costs. Costs incurred on defective products after they are shipped to customers.
