.Brief Exercise 11-2 Performance Measures and CentersOrganizations use a variety of performance measures to evaluate managers. Central to the idea of responsibility accounting is that performance measures are reflective of activities under a manager’s influence and control. Organizations often identify different levels of responsibility and refer to these levels as segments.The following performance measures and reports are used to evaluate managers of various segments:Required:For each performance measure and report listed below indicate which segment (cost center revenue center profit center investment center) they would most likely be used to evaluate.a. Return on investmentSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 1b. Cost budgetsSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 2c. Labor usage varianceSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 3d. Sales budgetSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 4e. Segment marginSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 5f. Sales volume varianceSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 6g. Residual incomeSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 7h. Overall flexible budget varianceSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 8i. Sales price varianceSelectCost CenterInvestment CenterProfit CenterRevenue CenterItem 9
