Activity 1. Now that you know the most essential terms in the study of quality and environmental cost management, let us try to check your recollection of these terms. In the spaces provided below, write the missing terms to complete the following statements:

1._______________ relate to attributes such as product performance, reliability, durability, and fitness for use.

2._______________ are costs incurred to prevent poor quality in the products or services being produced.

3._______________ are costs incurred because defects are produced despite efforts to prevent them.

4._______________ are the costs of activities executed to determine if products, processes, and other activities within the firm are in compliance with appropriate environmental standards.

5._______________ is the ability to produce competitively priced goods and services that satisfy customer needs while simultaneously reducing negative environmental impacts, resource consumption, and costs.

Activity 2. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs or external failure costs.

___________________1. Reentering data because of keypunch errors

___________________2. Technical support provided to suppliers

___________________3. Costs of inspecting raw materials

___________________4. Lost sales arising from a reputation for poor quality

___________________5. Design and engineering costs