The document discusses the costs of software quality, which can be categorized as: 1) Costs of control including prevention costs (quality infrastructure investments) and appraisal costs (error detection activities for specific projects). 2) Internal failure costs for correcting errors found before customer use. 3) External failure costs for correcting failures found after customer use. It provides examples for each category such as design reviews, testing, and resolving customer complaints. The document also mentions managerial preparation/control costs and costs of managerial failures.