Which Statement Is True Concerning External Failure Costs

Which statement is true concerning external failure costs?

A) External failure costs are incurred to prevent defects in the products or services being produced.
B) External failure costs are incurred to detect individual units of products that do not conform to specifications.
C) External failure costs are incurred when the firm discovers nonconforming products and services before delivery to customers.
D) External failure costs are incurred when the customers discover nonconforming products and services at delivery.

Correct Answer:

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