"Responsibility accounting" is the concept that says:
A) managers should be held entirely responsible for all investment decisions that impact the particular segment in which they are in charge.
B) managers should be held responsible for only those things under their control.
C) managers should never be held entirely responsible for things that happen within the particular segment in which they are in charge.
D) managers should be responsible for both revenues and costs of their particular segment.

Question

Quizplus · Accepted Answer

Responsibility accounting is the system of measuring performance and assigning responsibility to managers for their areas of control. It suggests that managers should be held responsible only for those things that are under their control, such as cost, revenue, and assets. This way, managers are held accountable for their actions and are motivated to work towards achieving the objectives of their segment. Therefore, option B is the most appropriate answer.

"Responsibility Accounting" Is the Concept That Says