Question

QUESTION 19 The basic objective of responsibility accounting is to charge each manager with those costs and/or revenues over which he has control O True O False QUESTION 20 A segment of a business responsible for both revenues and expenses would be called: 1. a cost center. 2. an investment center. 3. a profit center. 4. an incentive center. QUESTION 21 An profit center is a business segment whose manager has control over costs, revenues, and investments in operating assets. O True O False QUESTION 22 Residual income: is the return on investment (ROI) percentage multiplied by average operating assets. is the net operating income earned above a certain minimum required return on average operating will always be greater than zero. Ois the net operating income earned above a certain minimum required return on sales. assets

Answer 1

Question 19

Answer : False

The Basic Objective of Responsibility Accounting is to charge each manager with those cost over which he has control.

Question 20

Answer:

A segment of business responsible for both revenues and expenses are called profit center.

Question 21

Answer : False

A profit center is a business segment whose manager has control over costs, revenues but has no control over investment in operating assets.

Question 22

Answer :

Residual Income is the net operating income earned above a certain minimum required return on average operating assets.