4. (a)Define responsibility accounting.

2. Describe the FOUR (4) types of responsibility centres.

(4 marks)

3. TuahBerhad operates a Lekiu Division (that sells high performance sports cars) and a Lekir Division (that sells performance improvement parts for family cars). Below are the information related to the two divisions.

	Lekiu Division	Lekir Division
Total assets	RM33,000,000	RM28,500,000
Current Liabilities	RM6,600,000	RM8,400,000
Operating Income	RM2,475,000	RM2,565,000
Required rate of return	12%	12%

Calculate the items below for each division:

1. Return on Investment (ROI).

(3 marks)

2. Residual Income (RI)

(5 marks)

iii.Comment on the performance based on 4(a), 4(b) and above.