Which of the following is NOT a necessary essential element of activity-based responsibility accounting?
A)Process management requires significant group activity.
B)Performance evaluation employs dynamic standards.
C)Performance evaluation uses only financial measures.
D)Performance evaluation is based on optimal standards.

Question

Quizplus · Accepted Answer

Activity-based responsibility accounting uses both financial and non-financial measures for performance evaluation. Therefore, option C which states that only financial measures are used is not a necessary essential element. Options A, B, and D are necessary elements of activity-based responsibility accounting.

Which of the Following Is NOT a Necessary Essential Element