The term that describes what occurs when a manager does what is in his/her best interests and not what is in the best interests of the company as a whole is known as:

strategic planning.

suboptimization.

lowballing.

goal alignment.

2.

Which of the following statements is incorrect?

Operating assets are assets that are actually used to generate revenue.

Operating assets include both current and long-term assets.

Non-operating assets are not included in the calculation of return on investment.

ROI is calculated as revenue divided by operating assets.

3

An organizational unit of a business that incurs costs and generates revenues is known as a(n):

Sales center.

Profit center.

Cost center.

Investment center.

4.

Which of the following may be used to establish transfer prices?

A negotiated price

All of these.

Market price

Standard cost of a product