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

Question

Quizplus · Accepted Answer

The controllability principle is a fundamental concept in responsibility accounting, which states that managers should only be held responsible for those costs and revenues that are under their control. This principle helps in measuring the performance of managers and creating a sense of accountability among them. The other options are important concepts in accounting, but they are not directly related to responsibility accounting.

One of the Most Important Concepts in Responsibility Accounting Is