Video: Costs of Quality

In this lesson, Nick Palazzolo, CPA, breaks down the various costs related to maintaining and ensuring quality in a product or service. He delineates the categories of conformance, including prevention and appraisal costs, and non-conformance, comprising of internal and external failure costs. Nick emphasizes the importance of understanding these concepts as they encompass both the investments made to conform to quality standards and the penalties incurred when failing to meet them. Whether it's training employees, inspecting products pre- and post-production, or dealing with returns and warranty claims, Nick's explanation makes it clear why each cost is significant and how they all contribute to the total cost of quality—all crucial points that are key to remember for effective quality control and management.