four types of quality costing
1) Prevention costs—Avoid poor quality goods or services –Employee training–Improved materials–Preventive maintenance2) Appraisal costs—Detect poor quality goods or services–Inspection throughout production–Inspection of final product–Product testing3) Internal failure costs—Avoid poor quality goods or services before delivery to customers–Production loss caused by downtime–Rejected product units 4) External failure costs—Incurred after defective product is delivered–Lost profits from lost customers–Warranty costs–Service costs at customer sites–Sales returns due to quality problems