A warranty repair is an example of _______ cost.

1. an appraisal 2. Once again, none of the answers on this list is true! 3. an external failure 4. a prevention 5. an internal failure

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Expert Solution

Once goods are sold to customers then any cost a company incurs to repair the goods is called warranty cost. The warranty cost comes with a definite time period and upon expiry of the defined time, the company does not have to bear the cost of the damage. The warranty period falls in the external failure cost of the company. Therefore, the correct option is (3). All other options are misfit and wrong.

keosha answered 1 year ago

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