Quality costs have been discussed widely in the literature. This discu
ssion has not always agreed and it is possible to identify two basic s
chools of thought; one asserts the existence of a minimal level of qua
lity cost for a given level of prevention and appraisal activities, an
d the other asserts that through prevention quality improvement is con
stant. This paper summarises these positions and outlines a behaviour
model of quality costs that unifies and clarifies them. The behaviour
model is based on the consideration of the cumulative effects of preve
ntion. Ceteris paribus, continuous prevention activities should permit
quality improvements whilst at the same time reducing the costs neces
sary to obtain them. The behaviour model introduces the effect of exte
rnal quality requirements in an attempt to explain how, over time, qua
lity improvement efforts do not necessarily result in decreased qualit
y costs as customers' quality requirements rise over the same period.