A responsibility accounting system evaluates the performance of each responsibility center and its manager.

Question

Quizplus · Accepted Answer

Responsibility accounting is a system in which managers are made accountable for the performance of their own particular segment of a company, product line, or other designated area of responsibility. The system helps in evaluating the performance of each responsibility center and its manager by comparing actual performance against predetermined goals and standards. Therefore, the statement that a responsibility accounting system evaluates the performance of each responsibility center and its manager is true.

A Responsibility Accounting System Evaluates the Performance of Each Responsibility