Nonconformance costs

Nonconformance costs is the combination of internal failure and external failure costs; the costs incurred when a product is defective and therefore does not conform to its intended design.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Nonconformance costs. The combination of internal failure and external failure costs; the costs incurred when a product is defective and therefore does not conform to its intended design.