A responsibility accounting system ensures that

a. generally accepted accounting principles reporting requirements are met.

b. managers will not be held responsible for items they cannot change.

c. 99 percent of businesses utilizing such a system will be profitable.

d. easy correlations between revenues and costs can be drawn.

Which of the following represents the number of sales dollars generated by each dollar invested in assets?

a. Asset turnover

b. Average assets invested

c. Profit margin

d. Operating income

For purposes of computing EVA, the minimum desired rate or return on an investment is known as

a. ROI.

b. cost of capital.

c. residual income.

d. profit margin.