control costs

control costs

the costs to a firm of avoiding making defective products. Control costs fall into two main categories. First prevention costs, which are the costs of pre-production activities aimed at preventing defects. Prevention costs include costs of preparing quality manuals and procedures, training, process planning and collecting data about product quality Second, appraisal costs, which are the costs of eliminating defects after they occur but before products reach the customer. These costs include final goods inspection, inspection during the production process, and laboratory testing. See QUALITY COSTS, QUALITY CONTROL, NORMAL CURVE.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson