4) Which of the following statements regarding economic value added (EVA) is true? ent ten Sa A) Economic value added (EVA) adjustments are made to both the aftertax income and the capital employed. B) R&D and advertising expenditures would need to be expensed under EVA. on he C) Common stock would be an example of an economic value added (EVA) adjustment to eliminate accounting distortions. D) None of the above rue? jus Site ures ple nate 5) Which of the following statements regarding quality costs is(are) true? (A) In a cost of quality system, external failure costs are called nonconformance costs. (B) Prevention costs are costs incurred to detect individual units of product that do not conform to its specifications, A) Only A is true. B) Only B is true C) Both of these are true. D) Neither of these is true, 6) Activity-based cost management (ABCM) can best be defined as: A) a cost system using multiple departmental overhead rates. B) a quality control system focusing on eliminating errors and mistakes. C) an incentive system for a company's key decision-makers. D) the use of cost information gathered using activity-based costing (ABC). 7) Two years ago, one division of the Amberjack & Co. purchased depreciable assets costing $4,000,000. The cash flows from these assets for the past two years have been $900,000 and $950,000 respectively. Amberjack uses the straight-line depreciation method and the assets had an estimated useful life of 10 years with no salvage value. What is ROI for each year using historical cost and net book value? A) 12.5% for the first year. C) 22.5% for the first year ... B) 13.9% for the first year... D) None of these