Which of the Following Statements Is True with Regard to Costs

Multiple Choice

Which of the following statements is true with regard to costs of quality?

A) Internal failure costs are costs that result from defects or quality problems discovered inside the factory.
B) External failure costs are costs resulting for defects in distribution or warehousing of products (i.e.,outside the manufacturing facility) .
C) An example of internal failure costs is the cost of managing product returns by unsatisfied customers.
D) An example of external failure costs is the cost of handling product warranties.