The cost associated with providing poor-quality products or services. There are four categories of costs: (1) internal failure costs (costs associated with defects found before the customer receives the product or service); (2) external failure costs (costs associated with defects found after the customer receives the product or service);（3）appraisal costs (costs incurred to determine the degree of conformance to quality requirements); and(4)prevention costs (costs incurred to keep failure and appraisal costs to a minimum). Syn: cost of quality.
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