An accounting system that is set up to control costs and evaluate managers' performance by assigning costs to the managers responsible for controlling them is called a:
A)Cost accounting system.
B)Managerial accounting system.
C)Responsibility accounting system.
D)Financial accounting system.
E)Activity-based accounting system.

Question

Quizplus · Accepted Answer

A responsibility accounting system assigns costs to the managers responsible for controlling them, allowing for better evaluation of performance. This is different from a cost accounting system, which is focused more on determining the cost of producing goods or services. Managerial accounting systems are used for internal decision-making, while financial accounting systems are focused on reporting financial information to external stakeholders. Activity-based accounting systems are used to allocate costs based on specific activities that contribute to product or service production.

An Accounting System That Is Set Up to Control Costs