An important difference between financial measures of quality and nonfinancial measures of quality is that financial measures of quality tend to be useful indicators of future long-term performance, while nonfinancial measures have more of a short-term focus nonfinancial measures of quality tend to be useful indicators of future long-term performance, while financial measures of quality have more of a short-term focus nonfinancial measures are generally too subjective to have any long-term value, while financial measures are too objective for taxation purposes nonfinancial measures are generally too subjective to have any short-term value, while financial measures are too objective to have medium-term value Cause-and-effect diagrams are used in quality management systems to identify and respond to potential reasons of failure indicate how frequently each type of failure occurs distinguish random from nonrandom variations in an operating process evaluate the tradeoffs among prevention costs, appraisal costs, and failure costs Spoilage, rework, scrap, and machine repairs are all examples of prevention costs appraisal costs internal failure costs external failure costs