1. Cost, profit, and investment centers can all be classified as responsibility centers.T or F

2. Management decisions often include both financial and nonfinancial information. T or F

3. The total direct labor hours used for the direct labor budget comes from the: a.sales forecast. b.production budget. c. direct materials budget. d.sales budget.

4. Budgeting allows a service firm to a.hire professional staff to perform the budgeting work. b.coordinate professional staff needs with anticipated services. c.classify all personnel as either variable or fixed. d.budget expenditures before anticipated receipts.

5. Which of the following are the relevant costs in a special order decision? a.Variable costs b.Fixed costs c.Variable costs and fixed costs d.Variable costs and avoidable costs

6. Which of the following is important in the sell or process further decision? a.incremental revenue. b.incremental cost. c.both incremental revenue and incremental cost. d.neither incremental revenue nor incremental cost.

7. Order (1 to 5) the following budgets. Budget A.Sales B.Production C.Selling and administrative expense D.Capital expenditure budget E.Budgeted Balance Sheet

8. What is the return on investment for Las Sendas, Inc. for 2016 when: Sales:$2,000,000 Average operating assets:$4,000,000 Controllable margin:$600,000 a.60% b.50% c.30% d.15%