A responsibility accounting system:
A)Is designed to measure the performance of managers in terms of controllable costs.
B)Assigns responsibility for costs to the appropriate managerial level that controls those costs.
C)Should not hold a manager responsible for costs over which the manager has no influence.
D)Can be applied at any level of an organization.
E)All of the choices are correct.

Question

Quizplus · Accepted Answer

A responsibility accounting system is designed to measure the performance of managers in terms of controllable costs, assigns responsibility for costs to the appropriate managerial level that controls those costs, and should not hold a manager responsible for costs over which the manager has no influence. It can be applied at any level of an organization. Therefore, all of the choices are correct.

A Responsibility Accounting System