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Part I. Multiple Choice 1. Residual Income - a. (Minimum rate of retum Operating assets) - Operating income b. Operating income - (Minimum rate of

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Part I. Multiple Choice 1. Residual Income - a. (Minimum rate of retum Operating assets) - Operating income b. Operating income - (Minimum rate of retur * Operating assets) c. Operating Income/Average operating assets d. None of the above. 2. Which of the following are reasons that firms decentralize? a. Access to local information b. Training for employees c. Focusing of central management d. All of the above. e. None of the above. 3. Future costs that are the same across alternatives would be referred to as: a. Relevant costs b. Opportunity costs c. Variable costs d. Irrelevant costs. e. None of the above. 4. Which of the following would result in a favorable sales price variance? a. Price is lower than budgeted b. Volume is lower than budgeted c. Price is higher than budgeted. d. Volume is higher than budgeted. e. None of the above. 5. The Balanced Scorecard perspective include: a. Financial, Customer, Internal audit, Learning and growth (infrastructure). b. Financial, Customer, Internal audit, Learning and infrastructure. c. Financial, Customer, Internal business process, Learning and growth (infrastructure d. None of the above 11

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