Cost of conformance definition

What is the Cost of Conformance?

The cost of conformance includes all expenses incurred to ensure that a product meets the minimum quality standard. Conformance costs include standards application, employee training, process documentation, product inspections, and product testing. When incurring these costs, the intent is to avoid product failures.

The cost of conformance is usually much less than the costs that a business would otherwise incur, such as the cost of a product recall due to product failures in the marketplace. Consequently, it is usually cost-effective to make significant expenditures in the cost of conformance, rather than incurring even larger costs from negative downstream effects.

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