A number of terms relating to the cost of quality and quality management are listed below: Appraisal costs Quality cost report Quality circles Prevention costs Quality of conformance External failure costs Internal failure costs Quality costs Required: Select the term or terms that most appropriately complete the following statements. The terms can be used more than once. 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 and 3. In many companies, small groups of employees, known as 4. A company incurs 5. A company incurs and 6. Of the four groups of costs associated with quality of conformance, 8. meet on a regular basis to discuss ways to improve quality. in an effort to keep defects from occurring. because defects have occurred. 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 are incurred in an effort to eliminate the production of defective products 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, 11. Over time a company's total quality costs should decrease if it redistributes its quality costs by placing its greatest emphasis on are incurred. 12. One way to ensure that management is aware of the costs associated with quality is to summarize such costs on a and Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used in production $75,000 Wages paid to the workers who paint the figurines $86,000 Wages paid to the sales manager's secretary $38,000 Cost of junk mail advertising $55,000 What is the total of the conversion costs above? Multiple Choice $161,000 $75,000 $86,000 $93,000 At a sales volume of 38,500 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $442,750. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 39,400 units? (Assume that this sales volume is within the relevant range.) Multiple Choice $10.87 $11.19 $12.19 $11.50