In a responsibility accounting system, the recording of revenue and costs begins with the:
A) Most profitable segments of the business.
B) Least profitable segments of the business.
C) Broadest areas of managerial responsibility.
D) Smallest areas of managerial responsibility.

Question

Quizplus · Accepted Answer

In a responsibility accounting system, revenue and costs are recorded starting with the smallest areas of managerial responsibility, such as individual departments or cost centers, to ensure accountability and accurate performance evaluation.

In a Responsibility Accounting System, the Recording of Revenue and Costs