Quality Costs Definition:

Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units. There are four major types of quality cost. These are appraisal cost, prevention cost, internal failure cost, and external failure cost. 

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Other Related Accounting Articles:

• Quality Cost Report Definition
• Distribution of Quality Costs/Quality Cost Report
• Internal Failure Cost Definition
• Uses of Quality Cost Information (Report)
• External Failure Cost Definition
• Appraisal Cost Definition
• Cost Terms, Concepts, and Classifications
• Prevention Cost Definition
• Prevention Cost Definition
• Appraisal Capital Explained