In a responsibility accounting system, which of the following is true?

Question

Quizplus · Accepted Answer

In a responsibility accounting system, the manager should be involved in the development of the plan over which they have control and should be held accountable for the costs, revenues, or assets over which they have substantial control. This approach ensures that the manager has both control and accountability and can be attributed with the success or failure of the area of responsibility. Giving a manager very little autonomy would not be a good approach for this system to work effectively. Therefore, the correct answer is option D.

In a Responsibility Accounting System, Which of the Following Is