23.Management by exception Question 23 options: can only be applied when comparing actual results with the master budget. is most effective at top levels of management. can be implemented at each level of responsibility within an organization. is the opposite of goal congruence.

24.Which responsibility centers generate both revenues and costs? Question 24 options: Profit and cost centers Only profit centers Investment and profit centers Cost and investment centers

25.The linens department of a large department store is Question 25 options: an investment center. a profit center. a cost center. not a responsibility center.

27.A cost center Question 27 options: is a responsibility center of a company which incurs losses. incurs costs and generates revenues. is a responsibility center which generates profits and evaluates the investment cost of earning the profit. only incurs costs and does not directly generate revenues.

28.A profit center is Question 28 options: evaluated by the rate of return earned on the investment allocated to the center. referred to as a loss center when operations do not meet the company's objectives. a responsibility center that always reports a profit. a responsibility center that incurs costs and generates revenues.