Which of the following statements is TRUE of responsibility accounting reports?
A) Responsibility accounting reports are used to trace performance to the responsible department.
B) Responsibility accounting reports follow GAAP guidelines.
C) The SEC mandates the public release of responsibility reports.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Responsibility accounting reports are designed to trace the performance of specific segments, departments, or managers within an organization, allowing for better tracking and accountability of their actions and decisions. They are not necessarily governed by GAAP guidelines, nor are they mandated for public release by the SEC.

Which of the Following Statements Is TRUE of Responsibility Accounting