The cost of ensuring that the production process conforms to specifications are known as "appraisal costs" 2. The cost of achieving good quality include appraisal costs 3. Scrap cost is an external failure cost 4. In general, when the cost of achieving good quality increases, the cost of poor quality declines 5. Yield is equal to the number of good units produced plus the number of defective units which have been successful reworked 6. The QPR increases if either processing costs or rework costs or both decrease 7. Lost sales cost, as part of the cost of quality, refers to company not being able to keep up with consumer demand for their product. 8. The QPR decreases if more good quality units are produced relative to total product input.
