1)

Decentralization may increase a firm's costs because _____.

A) lower level managers duplicate services that may be less expensive if centralized.

B) information costs rise as top management needs additional reports to learn about decentralized units

C) lower level managers may make decisions that are not in the best interests of the firm as a whole

D) all of the above.

2)

Rate variances are the same as _______ variances. Efficiency variances are the same as ______ variances.

A) spending; effective

B) activity; static

C) usage; quantity

D) price; quantity

3)

In the net present value method, the disposal value of a long-term asset at the end of its useful life is considered to be a _____.

A) cash outflow at time zero

B) cash inflow at time zero

C) cash outflow in the year of disposal

D) cash inflow in the year of disposal