Question 6 (2 points) In regards to prevention, appraisal and failure costs. A) total appraisal costs are positively related to total failure costs. B) increased spending on prevention costs will also increase the need to incur appraisal costs. C) external failure costs may be difficult to quantify, so attention should only be focused on prevention, appraisal and internal failure costs. D) spending more on appraisal costs may also increase the amount of Internal failure costs. Question 7 (2 points) Which of the following regarding cost cutting is FALSE? A) Cost cutting is one of several cost management tools available to the manager B) Cost cutting may be more detrimental to profitability than increased spending would be. C) Cost cutting cannot have an impact on revenues, so profit will increase. D) Cost cutting can only have a limited impact on profits