Listed below are terms relating to decentralization and responsibility centres.

Cost centre........ Cost

Accountable ..... Investment

Profit ......... Flexible

Revenue ........ Residual income

Choose the term or terms that most appropriately complete the following statements. The terms can be used more than once.

1. A responsibility centre is any part of an organization for which a manager is for performance.

2. A profit centre is a business segment where the manager has control over and.

3. An investment centre manager is held responsible for the _______________ of the segment.

4. A is often evaluated using budget variances.

5. Centre managers are responsible for initiating investment proposals.