Responsibility accounting performance reports compare budgets with actual results for each responsibility center.

Question

Quizplus · Accepted Answer

Responsibility accounting performance reports are used to compare the actual performance of each responsibility center with its budgeted performance. This helps managers to identify areas where they may have exceeded their budget, or where they may be falling short, and take corrective action as required. Therefore, the statement is true.

Responsibility Accounting Performance Reports Compare Budgets with Actual Results for Each