The following statements have been made about cost classifications. (1) Repairs under warranty are an external failure cost (2) Lower selling price for sub quality goods is an internal failure cost Which of the above statements is/are correct?
A、1 only
B、2 only
C、Both 1 and 2
D、Neither 1 nor 2
A、1 only
B、2 only
C、Both 1 and 2
D、Neither 1 nor 2
【参考答案及解析】
Both statements are true. Repairs after the products have left the factory are an external failure cost. Having to reduce the price before the products leave the factory are an internal failure cost.
Both statements are true. Repairs after the products have left the factory are an external failure cost. Having to reduce the price before the products leave the factory are an internal failure cost.