Typically, an accounting or purchasing department in a company would be considered a cost center.

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Question 62 pts

The residual income amount should be greater than zero to be considered a favorable outcome for a division, product line, or department.

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False

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Question 72 pts

Communication of company goals and expectations is a benefit of budgeting.

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Question 82 pts

The purchasing department is responsible for any direct labor efficiency variances.

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Question 92 pts

The flexible budget is based on knowing the cost formula for the variable and fixed expenses.

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Question 102 pts

The return on investment (ROI) calculation measures the dollars added or subtracted to the company's treasury.

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True

False