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What is the Cost of Quality?

Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services, and that result from internal and external failures.

The Cost of Quality can be divided into four categories.

  • Prevention
  • Appraisal
  • Internal Failure
  • External Failure