Successful operation of a responsibility accounting system requires all of the following except:
A)Budgets prepared for each responsibility center.
B)The use of a bonus pool based on ROA (return on assets).
C)An accounting system which measures the performance of each responsibility center.
D)The preparation of timely performance reports.

Question

Quizplus · Accepted Answer

While budgets, performance measurements, and timely reports are all essential components of a responsibility accounting system, the use of a bonus pool based on ROA is not necessary. There are other ways to incentivize and reward employees for their performance in a responsibility center, such as bonuses based on meeting or exceeding specific goals or objectives. Therefore, option B is not required for a successful operation of a responsibility accounting system.

Successful Operation of a Responsibility Accounting System Requires All of the Following