elect the term from the list of terms that best matches the descriptions provided. Descriptions Term Practice of holding a manager responsible for revenue and expense items over which he or she exercises predominant control Type of responsibility center where the manager influences only costs and is held accountable for a specific output at a given level of cost Measure of the ability of a firm or segment within a firm to utilize available resources effectively to generate a positive return for shareholders Transfer price based on the external market price less any cost savings Situation that motivates a manager to act in his or her own best interest even though the corporation as a whole may suffer The point in an organization where the control over revenue or expense items is located Transfer price that is based on the historical or standard cost incurred by the supplying segment Type of responsibility center where the manager can influence revenues, expenses, and capital invested in his or her center to attain the best performance possible Type of responsibility center where the manager can influence both revenues and expenses for his or her center 0. Approach that evaluates a manager on his or her ability to maximize the dollar value of earnings above some targeted level of earnings 1. Reports comparing budgeted and actual controllable costs for each center within a firm When variances from the budget are emphasized in reporting procedures so that management concentrates its