Accounting Definitions Cost terms concepts and classifications

Quality Costs Definition

By Sidra Farid March 30, 2014 #Costs Definition, #Quality Costs

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.

Hope now you understand what are quality costs if not Click here to read a detailed article about quality costs.

By Sidra Farid

Sidra is a accounting teacher in a college and is expert in Managerial accounting . She is also the permanent writer at Accounting Details and is famous for her easy language and simple answers.