Many corporations allocate support department costs to profit centers. Examples of support departments include all of the following except:

Custodial
		a movie production division
		HR
		Legal

The cost of an activity to detect, measure or evaluate products or processes is called

		prevention costs
		internal failure costs
		appraisal costs
		external failure costs

An internal failure cost is a cost of controlling quality incurred before the product has become defective.

True

False

All of the following are features of a Lean Manufacturing System except

		a centralized maintenance location
		decreasing time in moving materials and people
		smaller batch sizes
		employee involvement

One of the principal limitations of the cash payback method is its failure to consider cash flows occurring after the payback period.

True

False

Non-financial factors should routinely be considered when trying to decide on an investment decision.

True

False

When the market price approach is used to set a transfer price between two divisions of the same company, the company that transfers the product out

		loses a small amount on each unit transfered.
		may lose a lot of money.
		makes the same profit as with any other sale.
		makes little or no profit on the transfer.