1. How do responsibility reports promote the management by exception doctrine?

  2. What is a responsibility center?

  3. What are the three types of responsibility centers? Explain how each differs from the others.

  4. Carmen Douglas claims that her com- pany’s performance evaluation system is unfair. Her company uses return on in- vestment (ROI) to evaluate performance. Ms. Douglas says that even though her ROI is lower than another manager’s, her performance is far superior. Is it possible that Ms. Douglas is correct? Explain your position.

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