A. In order for a responsibility system to work, the company needs to be organized into areas or divisions or some other breakdown based upon what a position is able to influence and control. Therefore, this statement is true.

B. A cost center has only costs under its control while a profit center has both costs and revenues under its control. Therefore, it is true that the focus of a cost center manager will be more narrow that the focus of a profit center manager.

C. In responsibility accounting, managers should be held accountable only for the things that they are able to control. Therefore, this statement is true.

D. Unfortunately, not everything that impacts a firm's performance is controllable by someone in the firm. A good example of this type of exogenous variable is the economy. As the economy itself improves or weakens, the company will also be affected. But no person in the company is in a position to influence the economy. Therefore, this statement is not true.