Which of the following describes responsibility accounting?
A) It assigns departmental performance goals to department managers.
B) It requires performance evaluation based on factors a manager can control.
C) It periodically produces reports that assist in evaluating managers' performance.
D) All of the above.

Question

Quizplus · Accepted Answer

Responsibility accounting is a management control system that assigns responsibility for performance to department managers. It involves setting performance goals for each department, evaluating managers' performance based on factors they can control, and periodically producing reports that help in evaluating their performance. Therefore, all the given options describe responsibility accounting.

Which of the Following Describes Responsibility Accounting