5. Which of the following would be classified as an internal failure cost on a quality...

Q.5 : Internal Failure cost on cost quality report

Internal failure costs are incurred to remedy defects discovered before the product or service is delivered to the customer. These costs occur when the results of work fail to reach design quality standards and are detected before they are transferred to the customer

Hence answer is D - Reentering data because of keying error

Q.6 : External Failure cost on cost quality report

External failure costs are incurred to remedy defects discovered by customers. These costs occur when products or services that fail to reach design quality standards are not detected until after transfer to the customer

Hence Answer is B - Product Recalls

Q.7 : Answer is C - It is consistent how plant and equipment items are reported on balance sheet

Q.8 :  Residual income is the amount of net income generated in excess of the minimum rate of return

Hence Answer is C - is the net operating income earned above a certain minimum required return on average operating assets

Q.9 Answer is B - 52,200

Contribution Margin for 5800 products : Existing contribution / current sales unit * new sales unit i.e. 55800*5800/6200