A responsibility accounting performance report displays:
A) Only indirect costs.
B) Only direct costs.
C) Both actual costs and budgeted costs.
D) Only actual costs.
E) Only budgeted costs.

Question

Quizplus · Accepted Answer

A responsibility accounting performance report should display both actual costs and budgeted costs in order to compare actual performance to planned performance. It may include both direct and indirect costs, depending on the scope of the responsibility center being reported on. Displaying only one type of cost (actual or budgeted) would not provide a full picture of performance.

A Responsibility Accounting Performance Report Displays