QUESTION ONE (20MARKS) A. With reference to performance evaluation decisions, explain the following terms i. Responsibility centre (2marks) ii. Investment centre ( 2 marks) iii. Responsibility accounting (2marks) B. WMT Ltd. Is a manufacturing company which has three divisions namely X,Y and Z distributed in three countries. The company does not allocate corporate head office costs or interest on long term debt to the divisions. The summary of the results of the company and its divisions for the Required i. Using the return on investment (ROI) criterion for each division and the organization as a whole, advice the management of WMT Ltd. On the most profitable division ii. Compute the residual income (RI) for each division assuming that WMT Ltd. requires a 10% return on the total assets of each division iii. Assuming that there is an asset available to division X which costs Sh.300 million and which has an annual profit of Sh. 60 million, advise the manager of division X on whether to undertake the project commenting on whether this decision is in line with the overall objective of the organization QUESTION ONE (20MARKS) A. With reference to performance evaluation decisions, explain the following terms i. Responsibility centre (2marks) ii. Investment centre ( 2 marks) iii. Responsibility accounting (2marks) B. WMT Ltd. Is a manufacturing company which has three divisions namely X,Y and Z distributed in three countries. The company does not allocate corporate head office costs or interest on long term debt to the divisions. The summary of the results of the company and its divisions for the Required i. Using the return on investment (ROI) criterion for each division and the organization as a whole, advice the management of WMT Ltd. On the most profitable division ii. Compute the residual income (RI) for each division assuming that WMT Ltd. requires a 10% return on the total assets of each division iii. Assuming that there is an asset available to division X which costs Sh.300 million and which has an annual profit of Sh. 60 million, advise the manager of division X on whether to undertake the project commenting on whether this decision is in line with the overall objective of the organization