In a Cost-of-Quality (COQ) reporting framework, the "cost of nonconformance" includes:

Select one:

a. Prevention costs and appraisal costs

b. Internal failure costs and external failure costs

c. Prevention costs and internal failure costs

d. Appraisal costs, internal failure costs, and external failure costs

e. Prevention costs and external failure costs

The capital budgeting decision technique that reflects the time value of money and is calculated as the present value of the future after-tax cash inflows by the initial cash outlay for the investment is called the:

Select one:

a. Net present value (NPV) method.

b. Capital rationing method.

c. Average accounting rate of return (ARR) method.

d. Profitability index (PI) method.

e. Present value payback method

35.Methods for directly valuing a firm include:

	Earnings Multiple	Discounted Cash Flow	Financial Ratios
A)	Yes	Yes	Yes
B)	No	Yes	Yes
C)	No	No	Yes
D)	Yes	Yes	No
E)	Yes	No	Yes

Select one:

a. Option A

b. Option B

c. Option C

d. Option D

e. Option E

36. Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture a high-pressure board, Dura-Plastic. Information concerning its operation in June was as follows:

Master Budget units of Dura-Plastic to manufacture	8,000
Units of Dura-Plastic actually manufactured	9,000
Budgeted amount of EPP to purchase	70,000	oz.
EPP material actually purchased	76,000	oz.
EPP material actually used in production	72,000	oz.
standard cost of EPP actually used in production	$478,800
standard quantity of EPP per unit of Dura-Plastic	7.5	oz.
Cost of EPP purchased	$574,560

The direct materials usage (efficiency) variance for June was:

Select one:

a. $13,300 unfavorable

b. $26,600 unfavorable

c. $29,925 unfavorable

d. $34,020 unfavorable