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From course:

Management accounting 2022

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Question:

What are the four costs of quality?

Author: Hjalmer Pedersen



Answer:

1. Prevention costs - Costs related to prevent future issues with the product. Such as design costs. 2. Appraisal costs - Detecting units which do not confirm to specifications. 3. Internal failure - Non-confirming product is detected before shipping out. 4. External failure - Non-confirming product is detected after shipped out. Leads to customer service costs etc.


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