True or False

34. A factory overhead cost variance report is a useful tool for management to use in controlling factory overhead costs. 35 A nonfinancial performance measure will express performance similar to financial performance measures do 36. In a decentralized organization, all major planning and operating decisions are made by top level management. One of the advantages of a decentralized organization is that decisions made by managers may affect the profits of the company. 37 38 39 40. One of the disadvantages of a decentralized organization is that it allows managers closest to the operations to make decisions. The process of measuring and reporting operating results is responsibility accounting in a decentralized organization. A cost center manager has the responsibility of controlling the profits of a company. A profit center, in a responsibility accounting system, the manager has responsibility and authority that affects revenues, costs, and operating assets. An investment center part of a responsibility accounting system, gives the manager the responsibility to make decisions as they pertain to invested assets only. 41. 42. 43. The measurement used in investment centers is called profit margin. 44. Cost-volume profits relationships can be used for analyzing the effects of sales mix on the break-even point and profits 45. Total variable cost remain the same in total dollar amount 46. Contribution margin is the difference between total variable cost less total sales. 47. The break-even point is the point at which total revenues equal exactly total cost. AP 47 The break-even point is the point at which total revenues equal exactly total cost. 48 The margin of safety indicates how much sales must decrease before an operating loss occurs, 49. Fixed unit cost remain constant as the level of activity changes. 50 Operating leverage can be used to analyze the effects of changes in sales on income from operations