Responsibility accounting is defined as a system that
A)defines responsibility by function only.
B)measures actual results against a flexible budget.
C)measures the results of a manager responsible for revenues and costs.
D)measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome.

Question

Quizplus · Accepted Answer

Responsibility accounting measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome. It is a system that assigns responsibility to specific individuals or departments for specific outcomes, and then measures their performance based on those outcomes. This allows for accountability and promotes better decision making within an organization. Choice A and B are too narrow in their definition, and choice C only addresses one aspect of responsibility accounting.

Responsibility Accounting Is Defined as a System That