Reference no: EM132666325

Problem 1: Which of the following statements is true of cost centers?

a. Managers in cost centers make decisions concerning sales or the amount of fixed assets invested in the centers.

b. Responsibility accounting reports for cost centers take the form of income statements.

c. Managers in cost centers have the responsibility and authority to make decisions that affect revenues.

d. Cost centers may vary in size from a small department to an entire manufacturing plant.

Problem 2: Which of the following is the main objective of internal processes?

a. To focus on improving the company's operations to eliminate waste and inefficiencies

b. To focus on a company's research and development efforts in developing new products and improving current products

c. To focus on exceeding customer expectations

d. To focus on increasing the future value of the company by educating and training employees and managers