Which statement concerning responsibility accounting is untrue?
A) For successful budgeting responsibility must be clearly defined.
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 centres are usually determined by differences in the function performed, such as the production department, marketing department, or research and development department. They are not usually determined by differences in the product the firm produces.

Which Statement Concerning Responsibility Accounting Is Untrue