Answer:
An example of external failure cost is:
Scrap and rework during production
Explanation:
External failure cost is the concept used in the finance, business, and management sciences to qualify the loss of a business after a product is sold. Examples involve lawsuits, legal fees, returns, etc. Now, the argument behind the answer is that warranty claims on handling are not part of the company, but the carrier and the retailer company. but scrap and rework during production is an external failure cost because after the production and selling scrap and rework during production will remain.
In Economics, Example of an external failure cost is Scrap and rework during production.
What is External failure costs?
External failure costs can be regarded as costs that is been incurred as a result of product failures after that product have been sold to customers.
These costs can contains some cost such as;
Therefore, option C is correct.
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