Managerial Accounting, 11/e
Ray Garrison, Brigham Young University
Eric Noreen, University of Washington
Peter Brewer, Miami University

Appraisal costs  Costs that are incurred to identify defective products before the products are shipped to customers.
External failure costs  Costs that are incurred when a product or service that is defective is delivered to a customer.
Internal failure costs  Costs that are incurred as a result of identifying defective products before they are shipped to customers.
ISO 9000 standards  Quality control requirements issued by the International Organization for Standardization that relate to products sold in European countries.
Prevention costs  Costs that are incurred to keep defects from occurring.
Quality circles  Small groups of employees that meet on a regular basis to discuss ways of improving quality.
Quality cost  Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units.
Quality cost report  A report that details prevention costs, appraisal costs, and the costs of internal and external failures.
Quality of conformance  The degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance or degrade its performance.
Statistical process control  A charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problems.