Which of the following responsibility accounting systems translates the strategy of an organization into operational objectives and measures?
A)Financial-based responsibility accounting
B)Operational-based responsibility accounting
C)Activity-based responsibility accounting
D)Strategic-based responsibility accounting

Question

Quizplus · Accepted Answer

Strategic-based responsibility accounting translates the strategy of an organization into operational objectives and measures. This allows for a clear alignment between the overall goals of the organization and the day-to-day responsibilities of various departments or individuals. Financial-based responsibility accounting focuses on financial performance measures, operational-based responsibility accounting focuses on operational measures, and activity-based responsibility accounting focuses on the costs and activities associated with specific business processes.

Which of the Following Responsibility Accounting Systems Translates the Strategy