b) Which of the following statements is false? In responsibility accounting, managers should be held accountable only for the items the cost of which they can control Companies that wish to motivate their employees should always avoid setting stretch targets Kaizen budgeting is an approach to budgeting whereby targets are set that represent small, progressive, and achievable improvements Revenue centers are examples of responsibility centers In a company with high and positive operating leverage the contribution margin per unit is below operating income xed costs exceed the sales price per unit managers must shift from Job costing to Activity-based costing to reduce the operating leverage more risk is assumed compared to a company with low and positive operative leverage The difference between the indirect and direct costs of a cost object is that Indirect costs are larger than direct costs Direct costs relate to a cost object, while indirect costs do not Direct costs can be traced to cost objects, while indirect costs must be allocated Direct costs behave as variable costs, while indirect costs behave as fixed costsl Suppose a company operates at full capacity and produces multiple products with different prices and costs. The decision to accept orders should be based on The contribution margin per unit of the constrained factor The selling price of the constrained factor The variable cost per unit of the constrained factor Insufcient data Assume that you are within the relevant range. When 25,000 units are produced, xed costs are 21.00 per unit. Therefore, when 20,000 units are produced, fixed costs will remain at 2 1.00 per unit increase to 26.25 per unit decrease to 16.30 per unit total 420,000 Which of the following may be cost obiects? The prototype of a new car model not aimed to be marketable The retail department of a car hiring company The sketch for a major product redesign All of the above Suppose that the factory of Paulo, Co. is able to produce 35,000 units of a product in a given quarter of the year, without considering unavoidable interruptions in activity. Also suppose that the quarterly company budget sets sales at 12,000 units. Then, the quantities of 35,000 and 12,000 units are respectively known as: Practical capacity and master-budget capacity Theoretical capacity and practical capacity