The cost of quality is measured as the sum of the

• total cost of prevention,

• total cost of appraisal, and

• total cost of failure, which reflects the

>■ cost of profits lost by selling units as defects, >- cost of rework for defective goods,

>- cost of processing customer returns, 3=- cost of warranty work,

>- cost of product recalls, 3^ cost of litigation related to products, and »- opportunity cost of lost customers. LO.1