1. Most firms have found that it is cost-effective to achieve a "zero defects" condition among their products and services.

True or False

2. Implementation of an activity-based costing system requires a company to generate more detailed accounting information than would be required by a traditional product cost system.

True or False

3. Farber Company produces its product in three departments, Prepping, Machining, and Finishing. A customer recently returned a defective product that had not been machined properly. The company's accountant would classify the repair cost as an internal failure cost.

True or False

4. Upstream costs are relevant for deciding whether to discontinue a product line.

True or False