B is corrent. Liability claim costs are examples of costs incurred for products that do not meet requirements of the customer and have been shipped to the customer.
A is incorrect. Appraisal costs are costs associated with quality control and include testing and inspection.
C is incorrect. Prevention costs are those associated with any quality activity designed to do the job right the first time.
D is incorrect. Internal failures occur when substandard products are produced but discovered before shipment to the customer.
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