Performance evaluation focuses on responsibility centers for a specific period, not on projects or individual items of equipment over their useful lives

All of the following are true of cost-based transfer prices EXCEPT that they:

A) provide no incentive to the supplying division to control costs when actual costs are used. B) may use standard costs to help maintain operating efficiency. C) promote the optimal level of transactions for the overall organization. D) don't give proper guidance when operating capacity is constrained.

The usual criterion for preparing consolidated financial statements is voting control in the form of majority ownership of common stock. However, for some entities common stock ownership does not indicate control because the common stock of the entity lacks one or more of the economic characteristics associated with equity. Which of the following is/are true?

a. U. S. GAAP refers to such entities as a variable interest entity (VIE). b. If the invested equity is so small that the entity requires other financial support to sustain its activities, it meets the criteria for a variable interest entity. c. If the equity owners lack meaningful decision rights, it meets the criteria for a variable interest entity. d. choices a and b, only e. choices a, b, and c.