Indicate the best answer for each question in the space provided. 1Examples of value-added activities include all of the following except a Product design Material movement. Assembly activities Establish an effective distribution network. d 2 Of the following components of total quality cost, which is most damaging to a company attempting to achieve a reputation as a world-class manufacturer? a Prevention costs b Appraisal costs c Intermal failure costs d External failure costs Of the following processes, which is chiefly concemed with products and services that have not yet been developed? a Just-in-time manufacturing b Activity-based management. c Target costing. d Total quality management. 3 4For a furniture manufacturer, which of the following activities could not be eliminated without changing the customer's perception of the product's desirability? a Ispection of incoming shipments of wood and fabrics b Movement of work-in-process from one work station to another c Set-up of machinery to produce different pieces of fumiture d Reducing the product's distribution network. 5 The cost borne by the customer of disposing of nickel-cadmium batteries is a component of the batteries a Life-cycle cost. b Overhead cost. c Cost of quality d Direct production cost