Which description listed below best defines "responsibility accounting"?

Question

Quizplus · Accepted Answer

Responsibility accounting is a system that evaluates the performance of each responsibility center and its manager. It involves assigning responsibility for costs, revenues, and assets to specific managers and holding them accountable for the results. This allows for better control over the company's operations and facilitates the achievement of its goals.

B, C, and D are not accurate definitions of responsibility accounting. B describes a cash budget, C describes a cash flow statement, and D describes a capital budget.

Which Description Listed Below Best Defines "Responsibility Accounting