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.
ISO9000 standards:
Quality control requirements issued by the International Standards Organization 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.
