State whether the following statements are true or false:

  1. A cost manager is concerned not only with cost management but also with revenue creation.
  2. Responsibility Accounting is generally classified into four classes.
  3. Responsibility Accounting is used as a control device.
  4. Whether a cost is controllable or non-controllable is directly related to whether or not the cost is fixed or variable.
  5. Responsibility Accounting is also known as profitability accounting.
  6. All controllable costs are direct costs.
  7. An Investment Centre manager is concerned with investment decisions of the company.
  8. Profit Centre is established where the responsible manager can influence both cost as well as revenue.
  9. Return on investment is a function of the income earned and the assets used in order to earn that income.
  10. Indirect costs are common to more than one segment of the organization.
  11. The performance report for a Responsibility Centre should include those costs which are of both controllable and non-controllable nature.