1. An Investment Center is accountable not only for its costs and revenues but also for the sufficiency of the return on the amount of capital invested within the business unit. (Points : 1) True
Question
1. An Investment Center is accountable not only for its costs and revenues but
also for the sufficiency of the return on the amount of capital invested within the business unit. (Points : 1) TrueFalse
| Question 2. 2. ROI = Operating Income / Average Liabilities. (Points : 1) True False |
| Question 3. 3. If a responsibility center were to be eliminated that would create the expectation that all common fixed costs would also be eliminated. (Points : 1) True False |
| Question 4. 4. In responsibility accounting entails evaluating future costs and revenues that differ between alternative decisions which should be consider in making business decisions. (Points : 1) True False |
| Question 5.5. When making investment decisions the payback of a project is calculated by dividing an initial investment by the expected annual cash inflow produced by the investment to determine how much time it will take to recoup the initial investment. (Points : 1) |
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