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Quality and Food Safety Management in Food
                       Service Industry

audits, training, new- products review and supplier quality
evaluation.

 Appraisal costs: the costs of verifying, checking or the
delivery process of that product or service to the customer.
Examples of appraisal costs include receiving or incoming
inspection, internal product audit, and quality administration
salaries.

 Failure costs: the costs incurred by a company because the
product or service did not meet the requirements and the
product had to be fixed or replaced or the service had to be
repeated. These failure costs can be further subdivided into two
groups- internal or external failures.

 Hidden costs: the costs of poor quality may be understated
because of costs which are difficult to estimate. It occurs in
both manufacturing and service industries. Three major groups
of hidden costs that are not considered in most COQ systems
include customer incurred costs, lost reputation costs and
customer dissatisfaction costs.
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