Which of the following statements concerning responsibility accounting is incorrect?
A) Responsibilities must be clearly defined for budgeting to be successful.
B) A manager is held responsible for the activities of his/her department.
C) The choice of responsibility centres in an organisation depends on its characteristics.
D) Responsibility centres are usually determined by differences in the product the firm produces.

Question

Quizplus · Accepted Answer

Responsibility centers are determined by the functions within a department, not by the differences in the products the firm produces.

Which of the Following Statements Concerning Responsibility Accounting Is Incorrect