Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 19 - Balanced Scorecard: Quality and Time - Assignment Material - Questions - Page 753: 19-5

Answer

Internal failure costs occur when defects are detected within the company's processes before customer delivery, while external failure costs arise when defects are discovered by the customer after product delivery, leading to potentially more significant and costly consequences.

Work Step by Step

Internal failure costs occur when defects are detected within the company's processes before customer delivery, while external failure costs arise when defects are discovered by the customer after product delivery, leading to potentially more significant and costly consequences.
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