What responsibility accounting system would be developed for operations in a continuous improvement environment?
A)financial-based responsibility accounting
B)functional-based responsibility accounting
C)activity-based responsibility accounting
D)strategy-based responsibility accounting

Question

Quizplus · Accepted Answer

In a continuous improvement environment, the focus is on identifying and improving the efficiency of different activities or processes that contribute to the overall performance of the organization. Hence, an activity-based responsibility accounting system would be the most appropriate in this scenario, as it facilitates the identification of individual activities or processes that drive costs and revenue, and enables managers to monitor and improve their performance over time. Financial-based responsibility accounting is more suitable for traditional accounting environments that focus more on financial outcomes, while functional-based and strategy-based responsibility accounting are less specific and less effective in identifying and improving the efficiency of individual processes or activities.

What Responsibility Accounting System Would Be Developed for Operations in a Continuous