Responsibility Accounting

Identification and Enumeration

1. Investment center

2. Profit center

3. Revenue center

4. Cost center

5. Revenue center manager

6. ROI (Return On Investment) model

7. Residual income model

8. Economic Value Added (EVA)

9. ROI= Profit/Net Sales × Net Sales/Investment

ROI= Return on Sales × Assets turnover

10. EVA=NOPAT - MI

11. Economic Value Added (EVA)

12. Transfer price

13. Market-based pricing

14. Cost-based pricing

15. Negotiated pricing

16. Arbitrary pricing

17. Dual pricing

18. Transfer price= Incremental cost + Opportunity cost - Savings

19. Breakeven time

20. Balanced scorecard

Multiple choice

1. B

2. C

3. A

4. C

5. D

6. D

7. D

8. C

9. A

10. C

11. C

12. A