'Responsibility accounting' is the concept that says:
A) Managers should be held entirely responsible for all investment decisions that impact the particular segment in which they are in charge.
B) Managers should be held responsible for only those things under their control.
C) Managers should never be held entirely responsible for things that happen within the particular segment in which they are in charge.
D) Managers should be responsible for both revenues and costs of their particular segment.

Question

Quizplus · Accepted Answer

Responsibility accounting holds managers responsible only for those things that are under their control. This means that they should not be held responsible for things that are outside of their responsibilities or authority. It is a way to ensure that managers are accountable for their actions and decisions within their specific area of responsibility. Option A and D are too extreme and not always feasible, while option C contradicts the concept of responsibility accounting entirely.

'Responsibility Accounting' Is the Concept That Says