The TWO fundamental classifications of Quality Costs are

A) Conformance Cost and Non-Conformance(or Control) costs

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A) Conformance Cost and Non-Conformance(or Control) costs

Conformance costs are prevention costs and appraisal costs.  Prevention costs occur with efforts to prevent defects.  Appraisal costs occur when detecting defects.  Examples in software development are peer reviews (prevention) and code inspection (appraisal).

Non-Conformance costs are internal failure costs and external failure costs.  Internal failure costs arise from defects caught and repaired internally.  External failure costs are those that impact customers.  Examples relating to software are functional testing (internal failure) and production issues (external failure). 

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