1- Cost attribute to poor quality

2- Cost of attaining quality

Cost of quality is a way for businesses to determine the costs associated with the quality and deficiencies of a product. Investing in higher quality standards can help a company reduce the costs associated with defects.

Cost of quality improvement exceed production costs

The concept of quality costs is a means to quantify the total cost of quality-related efforts and deficiencies. It was first described by Armand V. Feigenbaum in a 1956 Harvard Business Review article.[1] Prior to its introduction, the general perception was that higher quality requires higher costs, either by buying better materials or machines or by hiring more labor.[2] Furthermore, while cost accounting had evolved to categorize financial transactions into revenues, expenses, and changes in shareholder equity, it had not attempted to categorize costs relevant to quality. By classifying quality-related entries from a company's general ledger, management and quality practitioners can evaluate investments in quality based on cost improvement and profit enhancement

$15.00/carat minmum to $200/carat depends on quality of the gemstone