One of the most important concepts in responsibility accounting is the:
A) balanced scorecard.
B) controllability principle.
C) related-party transactions.
D) transfer price.

Question

Quizplus · Accepted Answer

The controllability principle states that a manager should only be held responsible for items that are under their control. This is a key concept in responsibility accounting as it helps to ensure that managers are not held accountable for factors that they cannot influence or change.

One of the Most Important Concepts in Responsibility Accounting Is