A responsibility report should
A) be prepared in accordance with generally accepted accounting principles.
B) show only those costs that a manager can control.
C) only show variable costs.
D) only be prepared at the highest level of managerial responsibility.

Question

Quizplus · Accepted Answer

Responsibility reports are designed to show costs and revenues for which a particular manager has control. This allows for better assessment of a manager's performance in managing the resources under their control. It is not limited to variable costs, does not need to adhere strictly to GAAP, and should be prepared at various levels of managerial responsibility, not just the highest level.

A Responsibility Report Should