The controllability concept states that managers should be held responsible for:
A) all items over which they have decision-making authority.
B) costs and revenues, but not investments in assets used in their division.
C) only items that are allocated to their divisions on a per-unit basis.
D) fixed compensation items, but not contingent compensation items.

Question

Quizplus · Accepted Answer

Managers should be held responsible for all items over which they have decision-making authority, as this aligns with the controllability principle in management accounting.

The Controllability Concept States That Managers Should Be Held Responsible