A defect which could have been removed during the initial stage is removed in a later stage. How does this affect cost?

If a defect is known at the initial stage then it should be removed during that stage/phase itself rather than at some later stage. It's a recorded fact that if a defect is delayed for later phases it proves more costly. The following figure shows how a defect is costly as the phases move forward. A defect if identified and removed during the requirement and design phase is the most cost effective, while a defect removed during maintenance is 20 times costlier than during the requirement and design phases.