Quizlet Cost Accounting--Ch. 19

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  1. Appraisal Costs: Costs incurred to detect which of the individual units of products do not conform to specifications
  2. Average Waiting Time: The average amount of time that an order will wait in line before machine is set up and order is processed
  3. Bottleneck: An operation where the work to be performed approaches or exceeds the capacity available to do it
  4. Cause-and-Effect Diagram: Diagram that identifies potential causes of defects. Four categories of potential causes are: human factors, methods and design factors, machine-related factors, and materials and components factors
  5. Conformance Quality: Refers to the performance of a product or service relative to its design and product specifications
  6. Control Chart: Graph of a series of successive observations of a particular step, procedure, or operation taken at regular intervals of time. Each observation is plotted relative to specific ranges that represent the limits within which observations are expected to fall
  7. Costs of Quality (COQ): Costs incurred to prevent, or the costs arising as a result of, the production of a low-quality product
  8. Customer-Response Time: Duration from the time a customer places an order for a product or service to the time the product or service is delivered to the customer
  9. Design Quality: Refers to how closely the characteristics of a product or service meet the needs and wants of customers
  10. External Failure Costs: Costs incurred on defective products after they are shipped to customers
  11. Internal Failure Costs: Costs incurred on defective products before they are shipped to customers
  12. Manufacturing Cycle Time: Another term for manufacturing lead time
  13. Manufacturing Lead Time: Duration between the time an order is received by manufacturing to the time a finished good is produced
  14. On-time Performance: Delivering a product or service by the time it is scheduled to be delivered
  15. Pareto Diagram: Chart that indicates how frequently each type of defect occurs, ordered from the most frequent to the least frequent
  16. Prevention Costs: Costs incurred to preclude the production of products that do not conform to specifications
  17. Quality: The total features and characteristics of a product made or a service performed according to specifications to satisfy customers at the time of purchase and during use
  18. Theory of Constraints: Describes methods to maximize operating income when faced with some bottleneck and some non-bottleneck operations
  19. Throughput Contribution: Revenues minus the direct material cost of the goods sold
  20. Time Driver: Any factor in which a change in the factor causes a change in the speed of an activity