1. Which of the following costs are classified as External Failure Cost: a. product testing b. raw material inspection C. warranty claim insurance d. all of the above 2. Appraisal activities: a. seek to prevent defects in the products being produced b. are activities required after defective products are delivered to customers C. correct defective products before they are delivered to customers d. include inspection of units to detect whether they conform to specifications 3. Throughput margin is calculated as: a. Sales - variable cost b. Sales - cost of good sold Sales - fixed cost d. Sales - direct material cost