Accounting Dictionary - Letter Q
are costs incurred in preventing poor quality, assessing the level of quality, or because poor quality does actually exist. Quality cost categories include prevention, appraisal, and failure costs. Prevention costs are incurred to prevent defects (e.g., training, improved production equipment). Appraisal costs are incurred for inspections and monitoring. Failure costs are incurred as a result of internal "failures" (e.g., rework, scrap, spoilage) or external "failures" (e.g., warranty costs, products returned or sales lost due to quality issues such as poor product performance and questionable safety).
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