The cost of quality are costs incurred to prevent, or costs arising as a result of, the production of low-quality product. These costs focus on conformance quality and are incurred in all business functions of the value chain. Discuss four categories of quality costs, give examples of individual cost of quality items in each category that companies in different economic sectors need to cover and explain how they might impact on companies’ performance.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The cost of quality are costs incurred to prevent, or costs arising as a result of, the production of low-quality product. These costs focus on conformance quality and are incurred in all business functions of the value chain.

Discuss four categories of quality costs, give examples of individual cost of quality items in each category that companies in different economic sectors need to cover

and explain how they might impact on companies’ performance.

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