The cost of quality refers to the out-of-pocket costs that customers incur if they receive a poor quality good or service.

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The cost of quality refers to the total cost incurred by a company to ensure that products or services meet customer requirements and expectations. This includes both the cost of preventing defects (e.g. training employees, implementing quality control measures) and the cost of correcting defects (e.g. returns, warranty repairs). The cost of poor quality, on the other hand, refers to the cost incurred by a company due to defects, such as lost sales, rework, and customer complaints.

The Cost of Quality Refers to the Out-Of-Pocket Costs That