The performance of the manger of Division A is measured by residual income. Which of the following would increase the manager's performance measure? A) increases in average operating assets B) decrease in average operating assets. C) increase in minimum required return. D) decrease in net operating income. A segment of business responsible for both revenues and expenses would be called? A) a cost centre. B) an investment centre. C) a profit centre. D) residual income. Costs that are always relevant in decision-making are? A) variable costs. B) avoidable costs. C) sunk costs. D) fixed costs. Which of the following is not an effective way of dealing with a production constraint (i.e., bottleneck)? A) reduce the number of defective units produced at the bottleneck. B) pay overtime to assigned to the bottleneck. C) pay overtime to workers assigned to work stations located after the bottleneck in the production process. D) subcontract work that would otherwise required use of the bottleneck. Which of the following is not a benefit of budgeting? A) it uncovers potential bottlenecks before they occur. B) it coordinates the activities of the entire organization by integrating the plans and objectives of the various parts. C) it ensures that accounting records comply with generally accepted accounting principles. D) it provides benchmarks for evaluating subsequent performance. Which of the statements is correct about using the scattergraph method in analyzing costs? A) unusual non-recurring cost behaviours are likely to be apparent. B) the regression line intersects all plotted cost points. C) the resulting information is precise, regardless of who performs the analysis. D) the resulting information will consistently be more accurate than that from other methods. An unfavourable labour efficiency variance indicates that? A) the actual labour rate was higher than the standard labour rate. B) the labour rate variance must also be unfavourable. C) actual labour hours worked exceeded standard labour hours for the production level achieved. D) overtime labour was used during the period