In doing control and/or performance evaluation, which of the following is a desirable device/idea?

		Investigation on significant variances only
		Use of static (planning or original) budget in comparing actual cost and the budget
		Minimizing costs rather than maximizing profits
		Holding managers responsible for uncontrollable events for decentralized units
		Determining compensation irrespective of performance evaluation

Which of the following is not true of variances?

		Labor spending (total) variance = Rate variance + Efficiency variance
		Standard cost = the cost that should have been incurred, given the actual production level of the product
		Standard quantity of material = the quantity of material that should have been used, given the actual production level of the product
		(Price variance) x (Quantity variance) < 0
		Spending (total) variance = Actual cost Standard cost

A favorable material quantity variance means that:

		the actual price paid was less than the standard price.
		the actual price paid was greater than the standard price.
		the actual quantity used was greater than the standard quantity allowed.
		the actual quantity used was less than the standard quantity allowed.

Daniel is the manager of East Division of a company. He is authorized to make all sales-related decisions (such as prices, sales mix, advertising, promotion, etc.) and costing decisions (such as determining wages, advertising, negotiating purchase prices, etc.). Also, he has decision rights to purchase or sell operating assets. Daniel is the manager of a(n):

		profit center.
		cost center.
		investment center.
		revenue center.
		operations center