12. Contribution margin would be the most important variable in evaluating the performance of: A. A cost center. B. A production center. C. An investment center. D. A profit center. 13. Which of the following statements about return on investment (ROI) is false? A. ROI equals margin divided by investment turnover. B. ROI is used to measure the performance of investment centers. C. Seeking to maximize ROI can result in a conflict between the interest of a particular manager and the interest of the business as a whole. D. Companies may minimize motivational problems by using original cost instead of book value in the denominator of the ROI formula. 14. Which of the following should not be included in the investment base used to compute residual income? A. Accounts receivable B. Inventory C. Cash D. Land held for future use 15. Which of the following may be used to establish transfer prices? A. Standard cost of a product B. A negotiated price C. Market price D. All of these are correct answers.