Under responsibility accounting,
A)both controllable and non-controllable costs receive the same attention.
B)cost centres are NOT classified as responsibility centres since there is no revenue responsibility.
C)as one moves up each level of responsibility in an organization, the responsibility reports become more detailed.
D)a manager's performance is evaluated based on matters that are directly under that manager's control.

Question

Quizplus · Accepted Answer

Under responsibility accounting, a manager's performance is evaluated based on matters that are directly under that manager's control, known as controllable costs. This allows for a more accurate assessment of a manager's performance, as they are not held responsible for costs that are outside of their control. Non-controllable costs are still reported, but not factored into the evaluation of the manager's performance.

Under Responsibility Accounting