A well-designed responsibility accounting system should hold a manager responsible for:
A) Only those line items that appear in a flexible budget.
B) Only those outcomes over which the manager has significant control.
C) Only long-term strategic goals.
D) Deficiencies uncovered in a SWOT analysis.

Question

Quizplus · Accepted Answer

A well-designed responsibility accounting system holds a manager accountable for those outcomes over which they have significant control. This ensures that managers are evaluated based on their performance in areas they can influence, making the assessment fair and motivating them to improve their departments' operations.

A Well-Designed Responsibility Accounting System Should Hold a Manager Responsible