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10. Which of the following statements regarding costs and decision-making is correct? A. Per-unit fixed costs can be misleading because such amounts appear to behave

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10. Which of the following statements regarding costs and decision-making is correct? A. Per-unit fixed costs can be misleading because such amounts appear to behave as variable costs when, in actuality, the amounts are related to fixed expenditures. B. Fixed costs must be considered only on a per-unit basis. C. Per-unit fixed cost amounts are valid only for make-or-buy decisions. D. Sunk costs can be misleading in make-or-buy decisions because these amounts appear to be relevant differential costs. 11. When the managers of subunits throughout an organization strive to achieve the goals set by top management, the result is: A. planning and control. B. responsibility accounting. C. delegation of decision-making. D. goal congruence. 12. Mobile Minx Incorporated is in the process of overhauling the performance evaluation system for its Mississauga Manufacturing Division, which produces and sells materials that are popular in the textiles industry. Which of the following is least likely to be chosen to evaluate the overall operations of the Mississauga Division? A. Revenue centre. B. Cost centre. C. Profit centre. D. Investment centre 13. Performance reports help managers: A. to effectively forecast operations. B. by assisting with pinpointing trouble spots and using management by exception reports to effectively control operations. C. decide whether a cost, profit, or investment centre framework is appropriate. D. design their organizational hierarchy. 14. Controllable costs, as used in a responsibility accounting system, consist of: A. those costs that a manager can influence in the time period under review. B. only fixed costs. C. only direct materials and direct labour. D. those costs about which a manager has some knowledge. 15. At which step or steps in the decision-making process do qualitative considerations generally have the greatest impact? A. Specifying the criterion and identifying the alternatives. B. Select an alternative. C. Developing a decision model. D. Collecting the data

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