The responsibility accounting system developed for operations in a continuous improvement environment would be
A) financial-based responsibility accounting
B) functional-based responsibility accounting
C) activity-based responsibility accounting
D) strategy-based responsibility accounting

Question

Quizplus · Accepted Answer

In a continuous improvement environment, it is important to focus on activities that contribute to improving processes and reducing waste. Activity-based responsibility accounting allows managers to track the activities that drive performance and allocate costs accordingly. This system is better suited than financial-based and functional-based systems because it focuses on value-added activities rather than just financial results or functional departments. Strategy-based responsibility accounting may also be used, but it is more focused on aligning activities with strategic goals rather than just continuous improvement.

The Responsibility Accounting System Developed for Operations in a Continuous