If a company uses responsibility accounting, a shift supervisor in the Austin production plant should be held responsible for
A)all costs associated with the Austin plant.
B)direct costs incurred on the supervisor's shift.
C)a share of all of the company's costs.
D)direct material, direct labor, and all manufacturing overhead incurred on the supervisor's shift.

Question

Quizplus · Accepted Answer

Responsibility accounting is a method of holding managers accountable for the performance of their department or responsibility center. In this case, the shift supervisor is responsible for the direct costs incurred on their shift, such as direct labor, direct material, and any other costs that can be directly attributed to their shift. The supervisor is not responsible for all of the company's costs (option C) as that would not be a realistic or fair assessment of their performance. Option A is too broad as it holds the supervisor accountable for all costs associated with the Austin plant, even those outside of their control. Option D is incorrect as it includes all manufacturing overhead, which would not be directly attributable to the supervisor's shift.

If a Company Uses Responsibility Accounting, a Shift Supervisor in the Austin