1 (2 points) What is a profit center? A business segment whose manager has control over costs and also has control over revenues and the use of investment funds A business segment whose manager has control over costs and revenues but has no control over the use of investment funds A business segment whose manager has no control over costs, revenues or the use of investment funds A business segment whose manager has control over costs or revenues or the use of investment funds Question 2 (2 points) To evaluate how a segment is performing, you would look at the: Profit (contribution) controllable by the segment manager Profit (or contribution) of the segment (also called the segment margin) Contribution margin of the segment Profit (or contribution) of the company as a whole Question 3 (1 point) Transfer prices only influence the buying profit center manager's decision about how much product/service to buy internally, but it does not influence the selling profit center manager's decision about selling internally. True False Question 4 (1 point) An advantage of decentralization is that decision-making authority is spread throughout the organization rather than being confined to a few top executives. This allows the organization to make the most balanced and informed decisions. True False