Distribution Corporation collects 40% of a month's sales in the month of sale, 55% in the month following sale, and 5% in the second month following sale. Budgeted sales for the upcoming four months are: The amount of cash that will be collected in July is budgeted to be $72,000. $179, 500. $206,000. $195, 500. All of the following are responsibility centers except cost center. profit center. investment center. equity center. Management by is the practice that directs executive attention to large budget variances. control objective exception analysis Troy Company budgeted $12 million for customer service costs, but actually spent only $10 million. Which of the following statements is the best course of action for management to take in this instance? Management will investigate this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service. Because this $2 million variance is favorable, management does not need to investigate further. Management will investigate this $2 million unfavorable variance to try to identify and correct the problem. Management should not investigate every major variance, especially an unfavorable variance. Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence? Unit managers may not understand the big picture of the company. Management does not have time to concentrate on long-term strategic planning. Unit managers have decreased motivation and retention. Managers receive training and experience to allow advancement in the organization. Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center? Sales volume variance Segment margin Return on investment (ROI) Return on assets (ROA)