Which of the following is true of responsibility accounting?
A) It is a system that measures the plans, budgets, actions, and actual results of a responsibility center.
B) It is an arrangement of lines of responsibility and authority within a responsibility center.
C) It explicitly incorporates continuous improvement and changes due to learning curve.
D) It examines how a result will change if the original plan is not achieved.

Question

Quizplus · Accepted Answer

Responsibility accounting is a system that measures the plans, budgets, actions, and actual results of a responsibility center. It involves identifying a manager who is responsible for achieving certain objectives and holding them accountable for their performance. It helps in evaluating the performance of these managers and in making necessary changes to the plan to ensure that the goals are achieved.

Which of the Following Is True of Responsibility Accounting