A distinguishing characteristic of an investment center is that. A) it is a responsibility center which only generates revenues. B) the profitability of the center is related to the funds invested in the center. C) interest revenue to the major source of revenues. D) revenues are generated by selling and buying stocks and bonds. A measurement frequently used to evaluate the performance of the manager of an investment center is A) the percentage increase in profit over the previous year. B) departmental gross profit. C) the amount of profit generated. D) the rate of return on funds invested in the center. Using standard costs A) provides a basis for evaluating cost control. B) makes management by exception more difficult. C) makes employees less "cost-conscious." D) increases clerical costs. Ideal standards A) are the standards generally used in a master budget. B) will always motivate employees to achieve the maximum output. C) reflect optimal performance under perfect operating conditions. D) are rigorous but attainable. Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3, 100 pounds of materials at a total cost of $18, 135. Dillon's total variance is A) $600 U. B) $465 U. C) $135 U. D) $450 F. Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3, 100 pounds of materials at a total cost of $18, 135. Dillon's materials price variance is A) $465 F. B) $1, 050 F. C) $600 F. D) $135 U