station activity #2 10/27

Question 1

. A ________________ center is used for any part of an organization whose manager has control over and is accountable for cost, profit, or investments

Answer 1

Responsibility Center

Question 2

__________________ is the net operating income that an investment center earns above the minimum required return on its operating assets

Answer 2

Residual Income (RI)

Question 3

The manager of a _______________ has control over cost, revenue, and investments in operating assets

Answer 3

Investment Center

Question 4

______________________ is the amount of time from when a customer order is received to when the completed order is shipped

Answer 4

Delivery Cycle Time (DCT)

Question 5

In a ________________ organization, decision-making authority is spread throughout the organization

Answer 5

Decentralized

Question 6

The manager of a __________________ has control over both costs and revenue, but not over the use of investment funds

Answer 6

Revenue Center

Question 7

The manager of a _______________ has control over costs, but not over revenue or the use of investment funds

Answer 7

Cost Center