Review the three components in the background material to answer the 10 questions and make computations relating to budgeting. Each answer must be 3 – 5 sentences. 1.- What is the fundamental principle of responsibility accounting? 2- List five important factors that should be considered in designing reports for a responsibility accounting system. 3- How soon should accounting reports be prepared after the end of the performance measurement period? Explain. 4- Name and describe three types of responsibility centers and list their main characteristics. 5 -Give five real world examples of at least two of the types of responsibility centers. 6- Many organizations limit the number of expense (cost) centers. a – List three reasons for wanting to limit cost c enters. b – List three ideas for eliminating or reducing the size of an existing cost center. 7- Compare and contrast an expense center and an investment center. 8- What is the connection between the extent of decentralization and the investment center concept? 9 – Give some of the advantages of decentralization. 10 – Differentiate between a direct cost and an indirect cost of a segment. What happens to these categories if the segment to which they are related is eliminated?