Responsibility accounting includes:
I. Monitoring primarily for mistakes
II. Assigning authority to subunit managers
III. Measuring the performance of subunit managers
A)I and II only
B)I and III only
C)II and III only
D)I, II, and III

Question

Quizplus · Accepted Answer

Responsibility accounting involves assigning authority to subunit managers and measuring their performance. It is not primarily about monitoring mistakes, so option I is incorrect. Therefore, options II and III are both required for responsibility accounting, making option C the correct choice.

Responsibility Accounting Includes: I. Monitoring Primarily for Mistakes