Controllable costs for responsibility accounting purposes are those costs that are directly influenced by sales volume. a given manager within a given period of time. production volume. a change in activity. All of the following statements are correct about controllable costs except all costs are controllable at some level of responsibility within a company. costs incurred directly by a level of responsibility are controllable at that level. all costs are controllable by top management. fewer costs are controllable as one moves up to each higher level of managerial responsibility. Current Attempt in Progress Waterway, Inc.'s budgeted data for March when 2000 units were budgeted to be produced and sold are provided: Actual profit in March totaled $44000. How much is the variance in a month when 2100 units are produced (assume sales revenue remains the same)? $7800 unfavorable. $12800 unfavorable. $2500 unfavorable. $51800 unfavorable. Costs incurred indirectly and allocated to a responsibility level are considered to be non-controllable at that level. True False All of the following statements are correct about management by exception except it means that top management has to investigate every budget difference. enables top management to focus on problem areas that need attention. requires that there must be some guidelines for identifying an exception. means that top management's review of a budget report is focused primarily on differences between actual results and planned objectives. A manager of an investment center can improve ROI by increasing variable costs. reducing variable and/or controllable fixed costs. increasing average operating assets. reducing sales. The denominator in the formula for calculating the return on investment includes operating and nonoperating assets. True False The formula for computing return on investment is controllable margin divided by average operating assets. True False When evaluating residual income, the calculation tells management what percentage return was generated by the particular division being evaluated. True False Residual income generates a dollar amount which represents the increase in value to the company beyond the cost necessary to pay for the financing of assets. True False Controllable costs for responsibility accounting purposes are those costs that are directly influenced by sales volume. a given manager within a given period of time. production volume. a change in activity. All of the following statements are correct about controllable costs except all costs are controllable at some level of responsibility within a company. costs incurred directly by a level of responsibility are controllable at that level. all costs are controllable by top management. fewer costs are controllable as one moves up to each higher level of managerial responsibility. Current Attempt in Progress Waterway, Inc.'s budgeted data for March when 2000 units were budgeted to be produced and sold are provided: Actual profit in March totaled $44000. How much is the variance in a month when 2100 units are produced (assume sales revenue remains the same)? $7800 unfavorable. $12800 unfavorable. $2500 unfavorable. $51800 unfavorable. Costs incurred indirectly and allocated to a responsibility level are considered to be non-controllable at that level. True False All of the following statements are correct about management by exception except it means that top management has to investigate every budget difference. enables top management to focus on problem areas that need attention. requires that there must be some guidelines for identifying an exception. means that top management's review of a budget report is focused primarily on differences between actual results and planned objectives. A manager of an investment center can improve ROI by increasing variable costs. reducing variable and/or controllable fixed costs. increasing average operating assets. reducing sales. The denominator in the formula for calculating the return on investment includes operating and nonoperating assets. True False The formula for computing return on investment is controllable margin divided by average operating assets. True False When evaluating residual income, the calculation tells management what percentage return was generated by the particular division being evaluated. True False Residual income generates a dollar amount which represents the increase in value to the company beyond the cost necessary to pay for the financing of assets. True False