Statement (I) : Internal failure costs are generated after the product is dispatched as a result of non-performance to requirements.

Statement (II): External failure costs are generated before the product is dispatched as a result of non-conformance to requirements. Which of the following code is correct related to above statements being correct or incorrect ?

1
Both Statements (I) and (II) are correct.
2
Both Statements (I) and (II) are not correct.
3
Statement (I) is correct but (II) is not correct.
4
Statement (II) is correct but (I) is not correct.

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