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Which of the following is most likely to be categorized as an external failure cost?

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Which of the following is most likely to be categorized as an external failure cost?

Which of the following is most likely to be categorized as an external failure cost?
A) the cost of inspection of materials to be used in production
B) the cost of machinery maintenance to avoid breakdowns during production
C) the cost of testing a product before shipment
D) the cost of lost future sales after a customer finds a defect in a product

Textbook

Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5^th

Authors: Miller-Nobles, Mattison, Matsumura

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