Management can hold department managers responsible for costs incurred in their area by
A) tracking production costs to production departments.
B) dividing total production costs by the number of production areas.
C) keeping work in process to a minimum in each area.
D) employing experienced production managers.

Question

Quizplus · Accepted Answer

Tracking production costs to production departments allows management to accurately identify and allocate costs to specific departments. This helps in holding the department manager responsible for the costs incurred in their area of responsibility. Dividing total production costs by the number of production areas and keeping work in process to a minimum in each area are also important cost control measures, but they alone may not effectively hold department managers accountable for the costs in their department. Employing experienced production managers is also important, but it does not directly address the issue of cost accountability.

Management Can Hold Department Managers Responsible for Costs Incurred in Their