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Al bought a handheld GPS from his local electronics store. When he entered an address it would not function. For the manufacturer of the GPS this would be categorized as what type of cost?
Suggested Answer: C
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11 comments · newest first
DA
Dante
12 months ago
Prevention Cost? Nah, that doesn't fit this situation at all.
MI
Minna
12 months ago
Agreed, Internal Failure makes the most sense here.
TR
Tran
1 year ago
Wait, how can it be an Internal Failure? That seems off.
DA
Dana
1 year ago
I think it's more of an External Failure Cost.
DE
Desire
1 year ago
That's definitely an Internal Failure Cost.
EM
Emmanuel
1 year ago
I practiced a similar question, and I think it was about how the company has to deal with the consequences of the product failing in the market. So, maybe it's External Failure Cost?
CA
Carmen
1 year ago
I feel like this could also relate to Appraisal Costs, but that seems more about testing products before they go out.
BE
Beckie
1 year ago
I think this might be an External Failure Cost since the GPS didn't work for the customer after purchase.
ES
Estrella
1 year ago
I'm not entirely sure, but I remember something about Internal Failure Costs being related to issues before the product reaches the customer.
RO
Rosendo
1 year ago
I've got this! The directors' refusal to correct the material error means the auditors can't issue a clean opinion. A qualified opinion wouldn't be strong enough, so the answer has to be C - Adverse opinion. Easy peasy!
PA
Pamella
1 year ago
I thought the Store Locator was more like a Secondary option since it's not a main function of the website.