Several descriptions of responsibility centers (they are in bold type) are listed below (1 5). Match each description with a type of responsibility center (A D) and with a potential performance measure (I V). Each numbered item has only one correct answer from each list.

Each lettered item may be used once, more than once, or not at all. Each Roman numeral item may be used only once. (Worth 10 pts.)

Responsibility Center Types Potential Performance Measures

A. Cost center. I. Budgets and variances B. Revenue center II. Inventory turnover

C. Profit center III. Number of new products or processes introduced

D. Investment center. IV. Return on investment

V. Revenue per passenger

1. _______ ________ Toy Companys Irish Division manufactures toys and is responsible for developing new lines of toys and games, including toys that use new technologies.

2. _______ ________ The Facilities Management Department of Corporation handles office cleaning and grounds maintenance.

3. _______ ________ The Cruise Booking Department of All-Ways Travel manages group reservations of twenty passengers or more. Its costs are largely fixed and determined by the travel agency manager.

4. _______ ________ Corporations Research and Development Department investigates new products and processes to increase organizational profits.

5. _______ ________ The Electronics Department of Sale.com, an Internet retail company, sells small electronics and sets its own product prices.