Listed below are several terms. Complete the following statements with one of these terms.

You may use a term more than once, and some terms may not be used at all.

a. ________________ are incurred to avoid producing poor-quality goods or services.
b. The philosophy and business strategy of manufacturing without waste is called
________________.
c. The more detailed information provided by ________________ helps managers control costs.
d. ________________ are costs incurred to detect poor-quality goods or services.
e. ________________ are incurred for every individual unit.
f. ________________ are activities for which the customer is willing to pay.
g. ________________ are costs that arise from product defects that are discovered before the product is shipped to the customer.
h. The cost to design a new product is an example of ________________.
i. ________________ include storage, moving, and inspecting activities.
j. The costs of providing warranty service are ________________.
k. ________________ are incurred for each batch of products.
l. Total manufacturing overhead is divided by one cost allocation base to calculate a
________________.
m. It is likely that ________________ will result if a single plantwide overhead rate is used when products vary widely in their usage of various MOH activities.
n. ________________ are incurred to support the entire organization and cannot be traced to any particular product or batch.

Plantwide overhead rate Internal failure costs Appraisal costs Undercosted Unit-level costs Non-value-added activities Product-level costs Lean production Overcosted Cost distortion External failure costs Facility-level costs Batch-level costs Value-added activities Activity-based costing Prevention costs