Five Cost Categories Related to Quality
Prevention cost: Cost of planning and executing a project so it is error-free or within an acceptable error range
Appraisal cost: Cost of evaluating processes and their outputs to ensure quality
Internal failure cost: Cost incurred to correct an identified defect before the customer receives the product
External failure cost: Cost that relates to all errors not detected and corrected before delivery to the customer
Measurement and test equipment costs: Capital cost of equipment used to perform prevention and appraisal activities