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Examveda

Cost incur for defective products, after their shipment to customers is classified as

A. prevention costs

B. external failure costs

C. appraisal costs

D. internal failure costs

Answer: Option B

Solution(By Examveda Team)

Cost incur for defective products, after their shipment to customers is classified as external failure costs. External failure costs are those costs incurred due to product failures after they have been sold to customers.

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