20 3 points In a profit center: the manager is responsible for both revenues and expenses but has no control over them. the manager has no control over transactions involving transfer prices that must be established. the manager has control over revenues and expenses. All of the other answers are incorrect. 21 3 points 22 The advantages of decentralized decision making include: decisions can be made at the point where problems arise. top management can use the management-by-exception principle. the investment center concept can be used. All of the other answers are correct. 3 points Management by exception: is a concept of organizational structure. requires that managers must examine detailed reports from lower levels to identify the exceptions that need investigation. is incompatible with the use of budget variances. means that upper-level management does not need to examine operating details at lower levels unless there appears to be a problem. 23 3 points A "center" can be designated as the following: a profit center. an investment center. an expense center. All of the other answers are correct. 24 3 points The costs associated with establishing a training program is an example of: appraisal costs external failure costs internal failure costs prevention costs