In a responsibility accounting system:
A) Controllable costs are assigned to managers who are responsible for them.
B) Each accounting report contains all items allocated to a responsibility center.
C) Organized and clear lines of authority and responsibility are only incidental.
D) All managers at a given level have equal authority and responsibility.
E) All of these.

Question

Quizplus · Accepted Answer

Responsibility accounting involves assigning controllable costs to managers who are responsible for them. This allows for accountability and better management of costs within a business. The other answer choices are incorrect.

In a Responsibility Accounting System