2. Prepare a quality cost report, and differentiate between acceptable quality level and the view
espoused by total quality control.
A quality cost report is prepared by listing costs for each item within each of the four major quality cost categories (see Exhibit 15-3). There are two views concerning the optimal distribution of quality costs: the AQL view and the zero-defects view. The AQL view holds that there is a trade-off between costs of failure and prevention and appraisal costs. This tradeoff produces an optimal level of performance called