I. (4.5 polnts each and is points total) multiple choice the best answer. questions Consider the following three statements 1. A profit center has control over both cost and reverse 11. An investment center has control over invested funds, but not over costs and revenue. III. Acost center has no control over sales Which statement is/are correct? Only I Only II Only 1 and III Only I and II 2. All costs that are incurred between the split-off point and the point of sale known as 2. Bunk COSES. b. Separate costs. C. Joint cost. d. committed costs. 3. John Browning recently invested in a project that has an expected annual cash inflow of 57,000 for 10 years, and an expected payback period ot 3.6 years. How much did John Invest in the project? b. 522,200 O. 525,200 d. S40.000 4. The step method ultimately results in less total cost being allocated to operating departments than the direct method. 2. True b. False 5. A firm is considering two mutually exclusive projects with the following cash flows: Project X Project Y Year 1 $ 40,000 $220,000 Year 2 80,000 80,000 Year 3 220,000 40,000 Each project requires an investment of $100,000. The firm's cost of capital is 10 percent. Which project will have the higher net present value? a. Project X b. Project X and Project Y will have the same net present value. c. Project Y d. none of the above