The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called
A) static reporting.
B) flexible accounting.
C) responsibility accounting.
D) master budgeting.

Question

Quizplus · Accepted Answer

Responsibility accounting is a system of gathering and reporting financial data by areas of responsibility within an organization. It is based on the idea that individual managers are responsible for certain areas of activity and should be held accountable for the financial results of those activities. This allows for better control and decision-making at the lower levels of management, and helps to ensure that resources are being used effectively and efficiently. Static reporting refers to financial statements that remain the same over time, while flexible accounting refers to the ability to adjust accounting practices to meet changing circumstances. Master budgeting is a process of preparing a comprehensive plan for an organization's financial activities.

The Accumulation of Accounting Data on the Basis of the Individual