Cost of quality (2026 syllabus)
You’ll learn how to classify and calculate the four categories of Cost of Quality: prevention, appraisal, internal failure and external failure.
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In this lesson
- 0:00 Cost of Quality Introduction
- 3:59 Four Cost Categories
- 8:10 Prevention and Failure Trade-Off
- 11:11 Fernbrook Classification Example
- 13:20 Interpreting Quality Cost Results
- 15:21 Perrigo Real-World Example
- 17:49 CIMA P1 Exam Pointers
- 19:30 Applying the Framework Beyond P1
About this lesson
This lesson explains the difference between costs of conformance and non-conformance, how prevention and appraisal affect failure costs, and why hidden quality costs matter to management accountants. You’ll apply the framework to a worked bakery example, including category totals, lost contribution and external failure costs. The lesson is new examinable content for the 2026 CIMA P1 syllabus, with exam guidance on classification questions, retesting, customer refunds and reputational damage.
Duration: 20m
Transcript
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