Which of the following statements is TRUE?

A. If clear areas of authority can be determined, it is doubtful that responsibility accounting can be implemented.

B. The president of an enterprise may delegate all decision-making power so that no revenue and expense items remain under the president's control.

C. A responsibility accounting system seeks to evaluate each manager on the revenue and expense items over which the manager has control.

D. As reports are addressed to higher management levels, fewer items become controllable.

Which of the following is not likely to be an expense center?

a. Maintenance Department

b. Accounting Department

c. An autonomous product division

d. Data Processing Center

Which of the following actions would increase ROI?

a. Reduce operating expenses with no effect on Sales or Assets

b. Increase investment in assets with no expected change in income

c. Increase sales with no expected change to income or assets

In 2019, Lybrand Company had income of $144,000, sales of $2,400,000, and investment of $1,200,000. To raise its ROI by 2% in 2016, the company should:

A. increase expenses by $24,000.

B. decrease investment by $400,000.

C. decrease expenses by $24,000.

D. increase investments by $400,000.

d. None of the other answer choices is correct.