1. The manager of a cost center is responsible for cost control and revenue generation.
(FALSE)
2. The control function entails evaluating a process against a standard and, if necessary, taking
corrective action. (TRUE)
3. Responsibility refers to an individual’s obligation to achieve desired results. (TRUE)
4. Standards are the basis for evaluating actual performance. (TRUE)
5. If a manager delegates responsibility to a subordinate, he or she must also grant the
subordinate authority to make decisions. (TRUE)
6. An inventory out-of-stock report is an example of a programmed, on-demand report.
(TRUE)
