Prevention costs are incurred prior to production to prevent product failure. Design Engineering ($300,000), Supplier Evaluation ($240,000), and Labor Training ($150,000) for a total of $690,000 would be done prior to production to improve quality. Product line inspection, product testing and breakdown maintenance are appraisal costs. Rework costs and product scrap are internal failure costs. Warranty repair costs, costs of returned goods, customer support and product liability claims are external failure costs.