8) Which of the following would decrease residual income (all other things constant)? A) Decrease in average operating assets. B) Decrease in the cost of capital. ht an a C) Increase in net operating income. D) Increase in average operating assets. 9) Which of the following is not a characteristic of a decentralized organization? A) Better use of local knowledge. B) Better use of top management's time. Reduced response time to environmental changes. D) More decisions made by relatively few individuals. ES US ta te 10) Which of the following is an example of an internal failure cost? A) Quality training costs. B) Machine inspection costs. C) Marketing costs to improve company's image tarnished from poor quality products D) Correcting product defects before being delivered