Q1:which term listed below describes costs incurred when the company fails to detect poor quality goods or services?

1. Internal failure costs
2. Just-in0-time production
3. External failure costs
4. Value-added activity

Q2: Which of the following is True?

1. Managerial accounting reports are audited by professional accountants
2. Managerial accounting reports help potential investors make decisions
3. Managerial accounting reports provide detailed internal information
4. Managerial accounting reports must follow GAAP

Q3: What external failure cost is very difficult to estimate?

1. Warrant Costs
2. Cost of service calls
3. Sale returns and allowances
4. Lost profits from lost customers