Q1. Budgets can be used to evaluate managerial performance in: A) Profit Centres only B) Cost Centres and Profit Centres Only C) Profit Centres and Investment Centres Only D) Cost, Profit and Investment CentresQ2. Among the responsibility centres listed, which type of responsibility centre is most likely to use growth in sales as a performance measure? A) Profit Revenue C) Cost D) InvestmentWhich of these are problems that can lead to suboptimal decision-making in responsibility centres? Managers in cost centres may.r focus on minimising costs and tend to ignore Managers in revenue centres mayr focus on revenue growth and ignore profit margins Managers in prot centres may focus on shortterm cost cutting that has detrimental effects on long-term performance -_ Q4. Agency costs include which of the following? A) losses from bad economic conditions B) costs of producing and auditing financial statements C) losses from changes in customer preferences D) All of the aboveE Development that meets the needs of the present 1without compromising the ability of future generations to meet their own needs is known as -_ -_ -_ -_ Q6. A company is experiencing decreasing sales from established customers. Which one of the following lists of performance measures is the best suited to identify the probable causes? A) sales growth, gross margin, average selling price B) Rework and waste, cycle time from order to delivery, speed of invoicing C) Customer profitability analysis, customer lifetime value, customer acquisition cost D) On-time delivery, defective goods returned for credit, customer complaintsQ7. Division A of Book retailer Dymocks Led has operating data as follows: Capacity 20,000 units Selling price $80 per unit Variable costs $45 per unit Fixed costs $20 per unit Division B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit. If Division A has capacity available to meet B's requirements, what is the minimum price it should charge? A) $75 B) $20 C) $40 D) $60