The following charges are found on the monthly report of a division that manufactures and sells products primarily to outside companies. State which, if any, of these charges are consistent with the responsibility accounting concept. Support each answer with a brief explanation.
(a) A charge for general corporate administration at 10% of division sales.
(b) A charge for the use of the corporate computer facility. The charge is determined by taking the actual annual Computer Department cost and allocating an amount to each user based on the ratio of its use to total corporation use.
(c) A charge for goods purchased from another division. The charge is based on the competitive market price for the goods.