Rockford Manufacturing Corporation uses a responsibility accounting system in its operations.Which one of the following items is least likely to appear in a performance report for a manager of one of Rockford's assembly lines? (CMA adapted)
A)Direct labor.
B)Materials.
C)Repairs and maintenance.
D)Depreciation on the manufacturing facility.

Question

Quizplus · Accepted Answer

Depreciation on the manufacturing facility is a fixed cost that is not within the control of the manager of an assembly line. Therefore, it is least likely to appear in a performance report for that manager, which typically focuses on variable costs that can be influenced by the manager's actions, such as direct labor and materials. Repairs and maintenance may also appear in the performance report, but to a lesser extent than direct labor and materials.

Rockford Manufacturing Corporation Uses a Responsibility Accounting System in Its