Which of the following is not one of the positive attributes of responsibility accounting
A)Senior management can more easily identify employees to blame.
B)Managers should understand the source of significant variances to budget and should be prepared to explain the reasons for discrepancies to senior management.
C)Managers should take the initiative to correct unfavourable discrepancies.
D)By assigning responsibilities for each cost, better cost control should result.

Question

Quizplus · Accepted Answer

Responsibility accounting is a management control system that involves assigning responsibilities for each cost to particular managers or departments. It has several positive attributes, including better cost control, the ability to identify significant variances to budget, and the initiative to correct unfavourable discrepancies. However, the purpose of responsibility accounting is not to assign blame, but rather to promote accountability and improve performance. Therefore, option A, which suggests that the primary goal of responsibility accounting is to blame employees, is not a positive attribute of this system.

Which of the Following Is Not One of the Positive