Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 72

Many organizations have found that investments in prevention and appraisal usually result in major cost savings in other areas. Explain this phenomenon.

Step 1 of 2

Cost of Quality i.e. COQ is a complete framework which includes the financial costs associated with quality. The major classifications of COQ categories are prevention cost, appraisal cost, internal failure cost and external failure costs.