12) A responsibility report provided to a manager typically includes: A) A list of all the items under the manager's control B) The differences between the budgeted and actual amounts for each item on the report C) The budgeted amount for each item on the report 12)- D) All of these are coIrect answers 13) 13) Which of the following statements is incerrect? A) Margin is a measure of the profits generated from sales. B) Tumover is calculated by dividing sales by average operating assets. C) Retun on investment can be improved by increasing sales, decreasing expenses, or increasing the asset base. D) If return on investment increases when sales increase, that change usually is due at least in part to the effect of fixed costs (operating leverage). TRUEFALSE. Write T if the statement is true and 'F' if the statement is false 14) If the master budget prepared at a volume level of 20,000 units includes factory rent of $40,000, a flexible budget based on a volume of 21,000 units would include factory rent of $40,000. 14) 3 15) The sales volume variance is favorable if actual sales volume is higher than the budgeted. 15) 16) Organization charts are drawn in a hierarchical fashion with low level managers shown at the bottom of the chart, middle level managers in the middle of the chart, and senior level managers shown at the top of the chart. 16) 17) A restaurant that is part of a retail store and managed by the retail manager would most likely be classified as a cost center 17) 18) Investment centers are often evaluated on the basis of return on investment 18) 19) Responsibility reports should be simple, show variances between the budgeted and actual amounts of controllable revenue and expense items, and be timely 19) 20) Responsibility reports should be arranged in a manner that promotes management by exception. 20)