Answer the questions above.

7. A responsibility reporting system involves the preparation of a report for each level of responsibility in the company's organization chart. True B. False A. B. 8. A cost center incurs costs and expenses) but does not directly generate revenues. True False A. B. 9. Aprofit center incurs costs and expenses) and also generates revenues. True False 10. Like a profit center, an investment center incurs costs and expenses) and generates revenues. In addition, an investment center has control over decisions regarding the assets available for use True False A. A. B. 11. Return on investment (ROI) is a measure of management's effectiveness in utilizing assets at its disposal in an investment center. True False A. B. 12. The manager of an investment center can improve ROI by increasing controllable margin, and/or reducing average operating assets. True False