A number of terms relating to the cost of quality and quality management are listed below:

Appraisal costs ................................... Quality circles

Quality cost report ........................ Prevention costs

Quality of conformance ........ External failure costs

Internal failure costs ........................... Quality costs

Choose the term or terms that most appropriately complete the following statements. The terms can be used more than once and a blank can hold more than one word.

1. A product that has a high rate of defects is said to have a low ____________________.

2. All of the costs associated with preventing and dealing with defects once they occur are known _________________________ as _______________________________.

3. In many companies, small groups of employees, known as ___________________ meet on a regular basis to discuss ways to improve quality.

4. A company incurs _________________ and ________________ in an effort to keep defects from occurring.

5. A company incurs ________________ and ______________ because defects have occurred.

6. Of the four groups of costs associated with quality of conformance, are generally the most damaging to a company.

7. Inspection, testing, and other costs incurred to keep defective products from being shipped to customers are known as _______________________________.

8. _______________________________ are incurred in an effort to eliminate poor product design, defective manufacturing practices, and the providing of substandard service.

9. The costs relating to defects, rejected products, and downtime caused by quality problems are known as _______________________________.

10. When a product that is defective in some way is delivered to a customer, _______________________________ are incurred.

11. Over time a company's total quality costs should decrease if it redistributes its quality costs by placing its greatest emphasis on __________________ and _______________.

12. One way to ensure that management is aware of the costs associated with quality is to summarize such costs on a _______________________.