Which of the following statements is true about responsibility accounting statements?
A) Responsibility accounting excludes controllable costs.
B) Responsibility accounting segregates fixed costs and variable costs.
C) Responsibility accounting excludes fixed costs and variable costs.
D) Responsibility accounting segregates uncontrollable costs from controllable costs.

Question

Quizplus · Accepted Answer

Responsibility accounting segregates uncontrollable costs from controllable costs, allowing managers to focus on the costs they can influence and take responsibility for. It does not exclude any costs, but rather helps to allocate them to the appropriate departments or individuals.

Which of the Following Statements Is True About Responsibility Accounting