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b. authority.
d. investment centers.
a. vertical structure.
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17/11/2017 Responsibility Accounting MC Questions Solution
9. Which investment basis (or bases) for the ROI calculation tend (or
tends) to cause managers to dispose of assets too soon?
10. Which investment basis (or bases) for the ROI calculation tend (or
tends) to cause managers to keep assets too long?
e. b and c.
13. The main argument for the use of residual income (RI) as a measure
of performance for investment centers, as opposed to the ROI, is that
15. Standard cost variances are frequently used to evaluate cost centers.
Which of these variances are compatible with lean enterprise concepts?
16. When using a standard cost system, which of the following is not a
potential behavioral problem associated with using material price
variances as a single basis for evaluating the purchasing department?
d. an investment center.
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27. In his article "The third wave breaks on the shores of accounting",
Robert Elliott advocated which type of organizational structure?
c. network.
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