The new t'ZElC}I of a company decides to measure performance based on earnings growth and give every ofce manager in the company {200 of them} a bonus of 16% if earnings growth exceeds 3% and no bonus otherwise. Why might this be a poor incentive system? Select one: O a. It is illegal to provide managers with prot-based bonuses. O b. It fails to hold people responsible for things they control that matter to the company. 0 c. It will cost the company too much money. 0 d. It ensures that responsibility and control are matched. 0 e. It holds each manager responsible for many things hefshe cannot control. Which of the following is the reason that ROI is not always a good performance evaluation measure for a responsibility center? Select one: Q a. Some responsibility centers do not have control of their investment activities. O b. Some responsibility centers have R015 that are much higher than the rm's cost of capital. O c. Some responsibility centers have managers planning to changejobs in the near future. O o. Some responsibility centers have accounting systems that are vulnerable to manipulation. 0 e. All of the above O f. None of the above For each of the following divisions, determine the most appropriate type of responsibility center for it. Assembly line Choose... Research and development Choose... Sales department Choose... Which of the following is not a plausible choice for a transfer price? Select one: O a. Full cost O b. Market price O c. Differential cost O d. Variable cost O e. Sunk cost