The statement mentioned above, regarding quality cost, is true.
Quality cost refers to the cost of the defects which is detected before delivery of the products to the customers. It is the cost associated with avoiding, detecting, and correcting quality defects in products.
The two broad types of the quality cost are production costs and service costs, which can be also referred to as design costs and control costs and inspection costs and manufacturing costs.
Therefore, it can be concluded that the above statement is true.
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