1. Which of the following statements is correct?

   		Management by exception means that management has to investigate every budget difference.
   		Under responsibility accounting, the evaluation of a managers performance is based on matters that the manager has shared responsibility for with another manager.
   		Under responsibility accounting, the evaluation of a managers performance is based on matters that the manager directly and indirectly control.
   		An investment center incurs costs and generates revenues. Investment centers are often evaluated on both the profitability of the center and the rate of return earned on the funds invested.