The excess of income from operations over a minimum acceptable income from operations is referred to as

c

a$.$ residual income.

b$.$ profit margin.

c$.$ retained earnings.

d$.$ None of these choices are correct.

Which of the following is the constraint under a negotiated price approach for establishing transfer prices?

a$.$ Transfer Price $=$ Market Price

b$.$ Variable Costs per Unit $$ Transfer Price $$ Market Price

c$.$ Variable Costs per Unit $=$ Transfer Price

d$.$ Variable Costs per Unit $>$ Transfer Price $>$ Market Price

Which of the following is NOT an advantage of a decentralized operation?

a$.$ Managers focus on their area of responsibility.

b$.$ It allows for better decision making.

c$.$ It provides training for managers.

$0$

d$.$ Each manager has his or her own sales force and administrative staff.

A centralized business is one in which

O

a$.$ the owner$-$manager has little to do with day$-$to$-$day business.

b$.$ all sales are done in one location.

O

c$.$ the administrative offices are housed in a central location.

d$.$ all major planning and operating decisions are made by top management.

An investment center has responsibility for

a$.$ costs, revenues, and investments.

b$.$ revenues and investments.

c$.$ investments only.

d$.$ costs and investments.