The Costs of a Recall

True/False:
The average food and beverage recall costs about $10 million—and that’s just the beginning.

True/False:
Direct costs are always higher than indirect costs.

True/False:
Legal fees and crisis communications are examples of indirect costs.

True/False:
Lost sales, cancelled contracts, and retailer penalties are examples of indirect costs.

True/False:
A single recall can permanently damage a company’s reputation and market trust.

The cost of prevention is almost always lower than the cost of recovery.

True/False:
Recalls only affect finances, not employee morale or brand reputation.