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    Purchasing and Supply Management Study Set 1
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    Exam 7: Quality
  5. Question
    External Failure Costs Are Incurred When Poor-Quality Goods or Services
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External Failure Costs Are Incurred When Poor-Quality Goods or Services

Question 7

Question 7

True/False

External failure costs are incurred when poor-quality goods or services are passed on to the customer and include costs of returns, warranty costs, and management time handling customer complaints.

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