Failure costs

Failure costs refers to two sets of costs: internal failure costs and external failure costs. Internal failure costs include those costs associated with failure during production, whereas external failure costs are associated with product failure after the production process.

Definition

According to Managing Quality by Foster (6th edition),

Failure costs. Two sets of costs: internal failure costs and external failure costs. Internal failure costs include those costs associated with failure during production, whereas external failure costs are associated with product failure after the production process.