Plans that identify costs and expenses under each manager's control prior to the reporting period, typically based on the flexible budget approach, are called:
A) Managerial accounting systems.
B) Responsibility accounting systems.
C) Cost accounting systems.
D) Activity-based accounting systems.
E) Responsibility accounting budgets.

Question

Quizplus · Accepted Answer

Responsibility accounting budgets are designed to assign costs and expenses to managers based on what they can control, often using a flexible budget approach to adjust for varying levels of activity.

Plans That Identify Costs and Expenses Under Each Manager's Control