Which statement is true concerning management by exception? A) B) C) It requires management to investigate only unfavorable differences D) It requires investigation of all material differences whether favorable or not 9. It causes employee morale problems. It requires that all differences will be investigated. When is a cost considered to be controllable? 10. nly when the manager has the power to incur the cost within a given time period B) Only if the cost is less than the budget amount C) Only when it is a variable cost D) Only when the amount changes based on different activity levels If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? a. 350,000 pounds b. 530,000 pounds c. 290,000 pounds d. 470,000 pounds 11. Which type of center is the housekeeping department of a manufacturing company? A) A segment B) A profit center 12. C. A cost center D. An investment center